The Weinstein Company’s board of directors have issued a statement indicating they have no choice but to file for bankruptcy.
The move comes after talks with an investor group, led by Maria Contreras-Sweet and Ron Burkle, have concluded without a signed agreement. In the statement, the company says it now believes the offer was ‘illusory’ and plans to begin the bankruptcy process.
“While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the Board has no choice but to pursue its only viable option to maximize the Company’s remaining value: an orderly bankruptcy process.”
New York Attorney General Eric Schneiderman recently filed a civil rights suit against the company and its founders, Harvey Weinstein and Bob Weinstein, saying he wanted to ensure victims were adequately protected in the sale. That came on top of several other conflicts that would make it almost impossible to get a deal concluded.
The company’s assets are now likely to attract interest from multiple parties once the bankruptcy process frees these assets of claims and liabilities.