Last-ditch efforts to save The Weinstein Company have failed and bankruptcy is now the only viable option, the company's board of directors says. The studio—founded by disgraced producer Harvey Weinstein and his brother Bob in 2005—says that while "this is an extremely unfortunate outcome for our employees, our creditors, and any victims," it has no choice after the collapse of efforts to sell its assets to an investor group, the Los Angeles Times reports. Talks to sell TWC to a group led by former Obama administration member Maria Contreras-Sweet came to a halt earlier this month after New York's attorney general filed a lawsuit against the company and the Weinstein brothers.
The lawsuit accused the company of ignoring evidence of Harvey Weinstein's sexual misconduct and other mistreatment of employees. In a strongly worded letter, the board slammed investors Contreras-Sweet and Ron Burkle, whose plan involved buying 51% of the company, introducing a majority-female board of directors, and creating a $40 million fund to compensate the scores of women who say they were sexually assaulted or harassed by Harvey Weinstein. After they presented a plan with "no viable option for a sale" following the lawsuit, "we must conclude that your plan to buy this company was illusory and would only leave this company hobbling toward its demise to the detriment of all constituents," the board wrote, per the Hollywood Reporter. (Read more The Weinstein Company stories.)