The world-famous film studio – which was co-founded by disgraced movie producer Harvey Weinstein – is set to file for bankruptcy after negotiations to sell its assets to an investor group collapsed.
In a statement, the company said: “The Weinstein Company has been engaged in an active sale process in the hopes of preserving assets and jobs.
“Today, those discussions concluded without a signed agreement.
“While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the Board has no choice but to pursue the only viable option to maximise the company’s remaining value: an orderly bankruptcy process.”
The board had been trying to sell to a consortium headed by Maria Conteras-Sweet in a deal worth around $500 million that would have seen a new, largely-female board take control.
However, negotiations collapsed earlier this month when the New York attorney general’s office filed a civil rights lawsuit against the firm and its co-founders over the allegations of sexual misconduct, accusing them of “repeatedly” breaking the city’s laws by “failing to protect employees from pervasive sexual harassment, intimidation and discrimination.”
Since the first allegations became public in October last year, more than 50 women have come forward to accuse the Hollywood producer of assault or harassment.
Weinstein – who was sacked by the studio shortly after the accusations came to light – is currently under investigation by police in the US and the UK.
However, no charges have yet been brought.
The 65-year-old producer has previously admitted to having “caused a lot of pain”, but he’s also denied many of the accusations he’s now facing.
The Weinstein Company was founded in 2005 by Harvey and his brother Bob Weinstein, who owns 23 percent of the firm.
The brothers created the company after leaving Miramax, which they founded in 1979, and it has since become one of the largest mini-major film studios in the world.