The Weinstein Company has reportedly announced plans to file for bankruptcy after talks to sell the troubled studio collapsed.
The studio founded by Harvey Weinstein said in a letter that investors seeking to buy the company were unwilling to provide interim financing to keep it afloat while a deal was finalized.
“It is simply impossible to avoid the conclusion that you have no intention to sign an agreement — much less to close one — and no desire to save valuable assets and jobs,” the company’s board wrote in the letter addressed to Maria Contreras-Sweet, former head of the U.S. Small Business Administration who is leading the investment group.
“We will now pursue the board’s only viable option to maximize the company’s remaining value: an orderly bankruptcy process,” it added.
Weinstein was ousted from his role at The Weinstein Company last year after numerous reports of sexual misconduct. He has been accused of sexual harassment or abuse by more than 60 women.
Weinstein has denied any accounts of non-consenusal sex.
The film studio had been seeking a buyer for several months, a process that was complicated two weeks ago when New York Attorney General Eric Schneiderman filed a lawsuit against Weinstein and his former company.
Schneiderman said that a four-month investigation into sexual harassment found “vicious and exploitative mistreatment of company employees.” The suit cites what it calls “egregious” violations of state civil and human rights laws.
The state attorney general said that any sale must ensure that victims are compensated.