The Weinstein Company’s talks of last resort to sell off its assets have collapsed. The firm is now expected to file for bankruptcy protection as has no further steps to take.
The Weinstein Company’s board of directors have announced the company’s intentions to file for bankruptcy protection now that their last possible efforts to rescue the company have fallen through. There was some hope that they might be able to sell off their assets to save themselves. However, the talks of that nature have since collapsed, leaving the firm with no further options.
Harvey Weinstein founded the company in 2005. However, things turned sharply in a bad direction when the movie mogul’s past came back to haunt him. He has been broadly accused of sexual assault and harassment by dozens of women over an extended number of years. In October 2017, he was fired from his company.
Seeking a Rescuer
The Weinstein Company has been on the hunt for a financial rescuer. It has been scrambling to try to keep its head above water ever since Harvey Weinstein’s accusers came forward. Weinstein himself has denied each and every one of the dozens of allegations against him.
The board was trying to sell off its assets, that is, its desperate studio, for a price tag of around $500 million. The hope was that an investor group would be willing and able to make the purchase.
According to a report published in the Los Angeles Times, the company’s board of directors initially announced its intentions to file for bankruptcy on Sunday. At that time, they stated they no longer saw any alternative to the filing.
Compensation for Accusers
A component of the attempted sale to investors would have had Weinstein’s accusers in mind. The goal had been to try to come up with $40 million. Those funds would have been used to compensate the people who have come forward to accuse the disgraced movie mogul for sexual harassment and assault.
The board is now filing for bankruptcy as its last possible option, having wrung out every other potential strategy they could find.