The Weinstein Company Avoids Bankruptcy, Sells Assets – New Company To Have All-Female Board
The Weinstein Co., which currently faces a lawsuit for failing to protect its employees from sexual harassment, has finally been sold.
THE WEINSTEIN COMPANY SELLS ASSETS
A group of investors led by Maria Contreras-Sweet has purchased the company’s assets in the hopes to transform the scandal-plagued film studio into a female-led entertainment group. The announcement came just four days after the sale to Contreras-Sweet and business partner Ron Burkle apparently fell through. At the same time, the Weinstein Co. declared they would be filing for bankruptcy protection because of the failed negotiations.
New York Attorney General Eric Schneiderman had filed a lawsuit against the company and against disgraced film mogul Harvey Weinstein last month, which put a wrench in the company’s sale plans. The bankruptcy filing would have halted the lawsuits filed by the women who accused the producer of sexual harassment, assault and other misconduct.
But now, the deal with the investor group led by Contreras-Sweet has been revived and will go through. The deal, which is subject to a 40-day closing period, includes a commitment from the buyers to set up a compensation fund of up to $90 million for Weinstein’s accusers. “The deal provides a clear path for compensation for victims and protects the jobs of our employees,” said the Weinstein Co.’s board of directors in a statement. “We consider this to be a positive outcome under what have been incredibly difficult circumstances.”
“Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company, with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall,” said Contreras-Sweet in a statement. She did not disclose the financial details, but sources familiar with the talks told the Los Angeles Times that the bid is worth $500 million, plus a $225 million assumption of debt.
“This next step represents the best possible pathway to support victims and protect employees,” Conteras-Sweet said Thursday with the announcement of the sale. “We are grateful to our investors who have believed in this process and in the compelling value of a female-led company.”