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Weinstein Company to file for bankruptcy

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Weinstein Company to file for bankruptcy

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The Weinstein Company plans to file for bankruptcy after a 400 million euro deal to sell the company collapsed.

Discussions with an investor group led by Maria Contreras-Sweet, a former official in Barack Obama’s presidential administration, came to a halt after the New York District Attorney, Eric Schneiderman filed a lawsuit against the studio.

The company's board, which includes Harvey Weinstein's brother, Bob, has been searching for a financial savior since its former co-chairman Harvey Weinstein was accused of sexual harassment and assault against more than 70 women, something the film producer, who was fired from the company last October, denies.

Schneiderman wanted any deal to provide adequate compensation to Weinstein’s alleged victims, protect employees and not reward executives who the suit alleges knew of the abuse but did nothing to stop it.

In a letter to Contreras-Sweet published by entertainment news website deadline.com, the Board wrote that it lost faith in the deal, which “we must conclude ...would only leave the Company hobbling toward its demise.”

The company, is reported as having debts of roughly 300 million euro, was launched in October 2005 and has produced and distributed films including “The King’s Speech” and “Silver Linings Playbook

The Weinstein scandal triggered the #MeToo movement against sexual harassment that spanned industries and political spheres, but especially in entertainment, where high-profile men were ousted from their jobs because of sexual misconduct allegations.