The Weinstein Company on Sunday announced that it would file for bankruptcy after sale talks with an investor group collapsed, The New York Times reported. “While we recognise that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice,” the statement read.
The film and television studio did not mention any deadline but said it would make the bankruptcy filing “in the coming days”.
The company’s board also released a letter it had sent earlier to the investor group led by Maria Contreras-Sweet and her primary backer, Ron Burkle. In the letter, the company said it had worked “tirelessly” in recent days to meet “virtually every demand you imposed.”
However, the investor group did not release the promised interim funding that would keep the studio functioning while a deal was finalised. “Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement,” the statement read, according to Variety.
Weinstein Company co-owner and film producer Harvey Weinstein faces allegations of sexual harassment and misconduct with employees, and well as threats to kill some of them. The deal between the firm and investors had almost been finalised earlier in February when the state of New York sued the company.