26/02/2018 09:22 GMT | Updated 26/02/2018 13:58 GMT

The Weinstein Company To Declare Bankruptcy

The decision was made when a $500million sale of the company fell through.

The Weinstein Company will file for bankruptcy after plans to sell the company fell through.

The news was revealed by various US outlets on Sunday (25 February) night, with Variety reporting that the board sent a letter declaring their intentions to  investors Ron Burkle and Maria Contreras-Sweet, who were part of the bid group attempting to buy the company.

Andrew Kelly / Reuters
Harvey Weinstein 

“Based on the events of the past week, however, 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 letter read (via Variety). “Despite your previous statements, 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.

“That is regrettable, but not in our power to change. While we deeply regret that your actions have led to this unfortunate outcome for our employees, our creditors and any victims, we will now pursue the Board’s only viable option to maximize the Company’s remaining value: an orderly bankruptcy process.”

In November, it was reported that the company’s debt exceeded $520million and Variety reports that the board had been hoping the sale would recoup $500million. 

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Harvey co-founded the company with his brother, Bob 

Despite efforts to save it, The Weinstein Company has been in dire straits since sexual assault, abuse and misconduct allegations against co-founder Harvey Weinstein began emerging in October 2017.

Harvey resigned from the board with immediate effect and in the months that followed, over 50 women have come forward with allegations about the film producer. He has denied all allegations of “non-consensual sex”.  

It is unclear what the future holds for the Weinstein Company-produced films that are awaiting release.

Among them are ‘Hotel Mumbai’, starring Dev Patel and ‘The Current War’, which received a Toronto Film Festival premiere in September, before its worldwide cinematic release was pushed back indefinitely.