The Weinstein Company Expects To File For Bankruptcy

By on March 3, 2018 in ArticlesCelebrity News

After failing to strike a deal to sell its assets, the Weinstein Company is filing for bankruptcy.

The board was in talks to sell the studio to an investor group led by Maria Contreras-Sweet for $275 million, plus the assumption of $225 million in debt, but those talks eventually fell through. Contreras-Sweet served as the Obama administration's Small Business Administration chief from 2014 to 2017.

The Weinstein Co. has struggled since dozens of women alleged co-founder Harvey Weinstein committed acts of sexual assault and harassment. Weinstein was fired in October and has maintained his innocence, claiming he's never had any non-consensual encounters.

YANN COATSALIOU/AFP/Getty Images

Investor Ronald Burkle and private equity firm Lantern Asset Management were also part of the bid group. As part of the proposed deal, the group promised to raise at least $40 million to compensate Weinstein's accusers.

The deal fell apart after the bid group failed to provide "interim funding to run our business and maintain our employees," according to a letter sent by the Weinstein Co. board.

Contreras-Sweet expressed an interest in acquiring the company largely due to wanting a woman-led board to control the company. She wrote in a letter that she aimed to continue to "inspire audiences around the world, especially our young girls and boys."

Other efforts to stay afloat have failed – the Weinstein Co. attempted to get loans from private equity firms and sold distribution rights for Paddington 2, which was released in January. After this deal fell through, the company Weinstein started back in 2005 is now turning to its last resort: bankruptcy.

Articles Written by Joey Held
If there's a story anywhere in the world of music, sports, or entertainment, Joey wants to tell it. He's been freelancing since 2010, and prior to that, he attended the University of Miami, where he double majored in broadcast journalism and sport administration. A Chicago native, Joey currently resides in Austin, TX. Follow him on Twitter and always feel free to suggest a song for his next karaoke performance. Joey's favorite billionaire is Mark Cuban.
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