Harvey Weinstein fallout
Weinstein Co. says it will declare bankruptcy after sale collapses
On Sunday, the Weinstein Co. announced that it will file for bankruptcy protection after the collapse of a $500 million deal to sell the company to investors led by Ron Burkle and Maria Contreras-Sweet. The Weinstein Co. board said it was officially calling off talks because it concluded from the bidding group's inadequate offer of emergency interim financing that its "plan to buy this company was illusory and would only leave this company hobbling toward its demise to the detriment of all constituents."
The sale looked close to completion two weeks ago, but then New York Attorney General Eric Schneiderman filed a civil lawsuit accusing the company of complicity in cofounder Harvey Weinstein's apparently rampant sexual misconduct. The bidders and Weinstein board met with Schneiderman last week, and the sale looked to be back on track, Variety reports, but "it appears that the added stress on the transaction exposed conflicts between the two sides."