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The company had planned to sell to a conglomerate of investors led by Obama cabinet member Maria Contreras-Sweet.
Following the collapse of a deal to sell The Weinstein Company to a group of investors, the former Hollywood juggernaut is filing for bankruptcy "in the coming days," The New York Timesreports.
The company had planned to sell to a conglomerate of investors led by Obama cabinet member Maria Contreras-Sweet, but the deal fell through after New York Attorney General Eric Schneiderman's office filed suit against the studio, citing "unrelenting sexual harassment, intimidation, and discrimination" by Weinstein which violated many state laws.
Related | Weinstein Company Sued For $5 Million Over Alleged Knowledge of Weinstein's Behavior
In a statement released yesterday, TWC said of their decision: "While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice."
The Times reports that TWC send a letter to Contreras-Sweet and the backers claiming they did not provide adequate funding to keep the business afloat during the transition period between owners, writing: "Late last night, you returned to us an incomplete document that unfortunately does not keep your promises. That is regrettable, but not in our power to change."
