Weinstein Company to file for bankruptcy: Reports
The Weinstein Company is expected to file for bankruptcy after plans for a sale fell apart.
Harvey Weinstein is going down, thanks to the numerous sexual crime allegations piled up against his name, and now he is taking everything he is associated with down with him. The Weinstein Company, which was supposed to make a deal with an investor group, is reportedly going to file for bankruptcy after it went south-ways.
The group, which is led by Maria Contreras-Sweet, who ran the Small Business Administration under the Obama administration, and backed by billionaire Ron Burkle, was expected to enter a deal reportedly worth $500 million. The group had "offered to pay roughly $275 million for the Weinstein Company, plus the assumption of $225 million in debt," according to the New York Times.
However, the two companies were unable to reach a deal, and now the TV and movie studio is filing for bankruptcy. In a strongly-worded letter the three-member Weinstein Company board, which includes Harvey Weinstein's brother and company's co-founder Bob Weinstein, accused Contreras-Sweet's team of leading them on.
They had reportedly worked “tirelessly” to meet “virtually every demand you imposed,” the board members claimed, adding that they have even offered a breakup fee if a deal was not consummated. However, the investor group went back on their promise of interim funding, which would have potentially kept the 150-employee studio operational until the deal was completed.
“Based on the events of the past week, however, we must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents,” the letter stated. “Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement – much less to close one – and no desire to save valuable assets and jobs.”
It is understood that the deal was close to being announced two weeks ago, but a lawsuit filed by New York Attorney General Eric Schneiderman, accusing the company of enabling Harvey's sexual predatory tendencies, seems to have led for its dissolvement. Schneiderman also objected to the investors’ plan to hire David Glasser, the COO under Weinstein, as CEO.
“Late last night, you returned to us an incomplete document that unfortunately does not keep your promises,” the letter further said. “That is regrettable, but not in our power to change.”
Without the deal, the company has virtually has the rug pulled from underneath them, and have decided to declare bankruptcy. “While we recognize that this is an extremely unfortunate outcome for our employees, our creditors, and any victims, the board has no choice,” the company’s statement said. “Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.”
While it is a sad news for the employees of the company, the fact that this Goliath of a company co-founded by Harvey has been brought to its knees is a matter of great pride for many:
It’s official: women telling their stories of sexual abuse bring #HarveyWeinstein and The Weinstein Company to their knees as company is forced to file for bankruptcy. Nothing short of remarkable! #MeToo— Areva Martin, Esq. (@ArevaMartin) February 26, 2018
We live in extraordinary times. The Weinstein Company, one of the most powerful movie studios in Hollywood, collapsed in less than a year.— Tom Vasquez (@TVasquez) February 26, 2018
The NRA's house is looking shaky. Things can happen very quickly in this new era. Change has its own velocity and inertia. https://t.co/U1ITEYY5TR
The Weinstein company is filing for bankruptcy. God is good. 😂 pic.twitter.com/rTQtXis389— The worst thing about prison was the dementors. (@LILBR4TX) February 26, 2018
The Weinstein Company filing for bankruptcy is my favorite news story of all time— emily 🤦♀️ (@emilarius) February 26, 2018
The Weinstein Company, the film studio co-founded by Harvey Weinstein, said it’s filing for bankruptcy. pic.twitter.com/ukQm99I1Ef— AJ+ (@ajplus) February 26, 2018
The Weinstein Company has filed for bankruptcy #TimesUp— Freya Wilcox ✨ (@freyawilcox) February 26, 2018
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