Talks to sell it collapsed in wake of sexual misconduct allegations against co-founder
February 27, 2018
The Weinstein Company plans to file for bankruptcy after talks to sell it collapsed, in the wake of sexual misconduct allegations against its co-founder Harvey Weinstein.
According to several media reports the firm had been trying to avoid folding since October - after more than 70 women accused the film producer of sexual misconduct including rape.
Harvey Weinstein-- the company's ex-chairman and once one of Hollywood's most influential men has denied all allegations of non-consensual sex.
The firm was said to have been close to inking a deal to sell itself for more than $500 million to an investor group led by Maria Contreras-Sweet, a former official in the Obama administration.
But negotiations were thrown into doubt two weeks ago when New York's Attorney General Eric Schneiderman sued the company and Harvey Weinstein over his alleged sexual harassment.
Schneiderman wanted any deal to provide adequate compensation to alleged victims, protect Weinstein Company employees -- and not reward executives who the suit alleges knew of the abuse but did nothing to stop it.
The company, which Reuters reported as having debts of roughly $375 million, was launched in October 2005 and produced and distributed hits including "The King's Speech" and "Silver Linings Playbook".