Following the collapse of a sales talk with a group led by Maria Contreras-Sweet, who ran the Small Business Administration under President Barack Obama, Weinstein Co. is forced to file for bankruptcy. This further extends the damages of the sexual misconduct allegations against Harvey Weinstein, the company’s co-owner and once Hollywood exec.
The group had offered to pay roughly $275 million for the Weinstein Company, plus the assumption of $225 million in debt. Weinstein Co. issued the following statement on Sunday, February 25th:
While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice. Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.
The Weinstein Co. has been trying to avoid bankruptcy ever since reports of decades of sexual harassment occurring in the company was made mainstream.