The Weinstein Company to File for Bankruptcy
Published Feb 26, 2018The Weinstein Company is expected to file for bankruptcy, after the latest round of negotiations to sell the troubled studio collapsed.
Disgraced movie producer and company co-founder Harvey Weinstein was fired from the film studio last fall amidst allegations of sexual harassment and assault. Since then, the company has been seeking to sell off its assets to an array of investors — which even included JAY-Z at one point.
According to the Weinstein Company's board of directors, a deal to sell the studio to an investor group for $500 million USD fell through last night (February 25), leaving them no choice but to file for bankruptcy.
Negotiations collapsed when the investors refused to put enough cash upfront to keep company afloat for the immediate future and assure job security for current employees.
The board of directors also objected to the investors' plan to appoint Weinstein's former COO David Glasser as CEO of the company. He was fired earlier this month, after the New York attorney general filed a lawsuit claiming that Glasser had failed to protect employees from Weinstein's pattern of sexual harassment.
"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 board said in a letter rejecting the deal. "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."
Read a copy of the board's full letter of rejection here [via Variety].