The Weinstein Company, co-founded by Harvey Weinstein, who has been accused of serial sexual harassment, will file for Chapter 11 soon, according to a number of media reports. 24/7 Wall St. recently put the company on its list of brands that will disappear in 2018.
The BBC reported:
The New York studio co-founded by disgraced film producer Harvey Weinstein is to file for bankruptcy after talks to sell its assets to an investor group collapsed, reports say.
Talks ended two weeks ago when the New York attorney general’s office filed a lawsuit against the Weinstein Company.
Directors were quoted as saying bankruptcy was the only viable option.
Mr Weinstein faces dozens of allegations of sexual abuse, including rape, but denies non-consensual sex.
“The Weinstein Company has been engaged in an active sale process in the hopes of preserving assets and jobs,” the board said in a statement reported by several US newspapers.
“Today, those discussions concluded without a signed agreement.”
The statement said “an orderly bankruptcy process” was the “only viable option to maximise the company’s remaining value”.
The 24/7 Wall St. comments about Weinstein from 10 Brands That Will Disappear in 2018:
The Weinstein Company, helmed by Harvey Weinstein, was among the most storied movie producers in Hollywood history.
The company was started in 2005 by Harvey and his brother Bob. Because of a number of sexual harassment charges made against Harvey, the operations of the Weinstein Company have become untenable.
This does not mean the company is without very valuable assets, which will almost certainly be bought by third parties. Those assets include “Spy Kids,” “The King’s Speech,” “Django Unchained,” “Scary Movie 5,” and more.
There has been speculation that an outsider would invest in The Weinstein Company. In November, two women-led investor groups expressed interest in buying the company. It is a much greater likelihood, though, that the company’s assets would be distributed in a clean and direct purchase.