Weinstein Company will declare bankruptcy

The Weinstein Company is going to file for bankruptcy, reports the American press after the court tried to impose conditions on the sale of the company, which it had with one of the founders of formerly all-powerful Hollywood producer Harvey Weinstein.

The company has declined since reports of sexual harassment, abuse and rape against Weinstein, producer of award-winning films such as "The Artist," "The King's Speech," and many others began in October.

"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victim, the board of directors has no choice but to seek the only viable option to maximize the remaining value of the company: bankruptcy," says board of directors of the Weinstein Company in a statement quoted by the Los Angeles Times 

The New York Times also released the information. Newspapers reported the end of negotiations between the Weinstein Company and a group of investors led by Maria Contreras-Sweet, a former government official of former President Barack Obama.

The group was ready to conclude a Weinstein Company purchase deal for nearly $ 500 million, until New York state filed suit against the company on Feb. 11 for failing to protect its employees from harassment and sexual assault. Justice has blocked the operation.

The lawsuit against Weinstein, his brother Bob and the producer was put forward in the face of fears that the imminent sale of the company could leave the victims without the possibility of adequate compensation.

New York Attorney General Eric Schneiderman complained about the negotiation for the sale of The Weinstein Company. "An agreement that essentially only removes the Weinstein brothers, but leaves the rest of the administration intact, we think it is unacceptable."

Entertainment magazine Variety posted on its website a letter allegedly sent by the Weinstein Company to Contreras-Sweet and Ron Burkle, who was also appointed as a member of the investment group interested in buying the company.

The letter, dated Feb. 25, claims the company "worked tirelessly" after a meeting with Attorney General Schneiderman and investors last Wednesday. But he points out that the investor group has failed to keep promises made on "high-standard human rights policies" and the presentation of the necessary temporary funding.

"We must conclude that his plan to buy this company was illusory and would leave only the company sent to its disappearance to the detriment of all its members, something that the board of directors will not let happen," says the text released by Variety.

Contreras-Sweet and Burkle have not responded so far to AFP's request for comment .

Bob Weinstein is the current president of the company, who fired his brother Harvey Weinstein last year.

Since the release of the Weinstein scandal, dozens of civil lawsuits, at least two collective ones, have been filed against Harvey Weinstein and the Weinstein Company, especially by women who report being beaten by the famous Hollywood producer. 

According to the press, Weinstein is being treated for sex addiction and is being investigated in the United States and Britain. But so far no charges have been brought against him for any crime. He denies any sexual intercourse without the consent of the women.