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Weinstein Company to file for bankruptcy

By Ray Downs
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Weinstein Company to file for bankruptcy
Harvey Weinstein arrives on the red carpet 2016 amfAR New York Gala at Cipriani Wall Street on February 10, 2016 in New York City. On Sunday, the Weinstein Company announced it would file for bankruptcy. File Photo by John Angelillo/UPI | License Photo

Feb. 26 (UPI) -- The Weinstein Company will declare bankruptcy after failing to negotiate a sale of the company, according to reports Sunday.

The Weinstein Company. board was in negotiations with an investor group led by Maria Contreras-Sweet, who ran the Small Business Administration under President Barack Obama, but a deal failed to materialize.

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"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice," a company statement said, according to The New York Times.

In a separate letter, the Weinstein Co. board blamed Contreras-Sweet's investor team, which includes billionaire Ron Burkle, for not closing the deal on the sale.

"While we deeply regret that your actions have led to this unfortunate outcome for our employees, our creditors and any victims, we will now pursue the Board's only viable option to maximize the Company's remaining value: an orderly bankruptcy process," the letter states, according to Bloomberg.

Once considered one of the most respected film production houses in the business, the Weinstein Company suffered after numerous women came forward with sexual misconduct allegations against the company's co-founder and namesake, Harvey Weinstein.

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And earlier this month, New York Attorney General filed a lawsuit against the Weinstein Company for civil rights abuse allegations in connection with the sexual misconduct allegations.

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