The Weinstein Co. declares bankruptcy
Los Angeles, March 20 (IANS) The Weinstein Co. has announced that it has filed for bankruptcy, finding itself unable to survive the allegations of sexual abuse levelled against its co-founder Harvey Weinstein last year.
The company may yet be able to reorganise and continue to produce TV shows and films under new ownership. Lantern Capital put in a “stalking horse” bid, which provides a floor for a bankruptcy auction.
“The Board selected Lantern in part due to Lantern’s commitment to maintain the assets and employees as a going concern,” the company said in a statement issued on Monday to variety.com.
“The company hopes that this orderly sale process under the supervision of the Bankruptcy Court will allow it to maximise the value of the company’s assets for the benefit of its creditors and other stakeholders.”
The company also announced that it has released its employees from their non-disclosure agreements, as part of an ongoing negotiation with New York Attorney General Eric Schneiderman.
“No one should be afraid to speak out or coerced to stay quiet,” the company said.
“The company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world.”
The allegations against Harvey Weinstein, first documented by the New York Times on October 5, tipped the company into a death spiral.
He was fired three days later, and subsequently resigned his position on the company board.
TV deals were cancelled and the company was forced to take film releases off the calendar.
As revenue dried up, the company struggled to pay its bills and the staff has dwindled from 150 to less than 100 employees.
The company’s credit cards were frozen in recent weeks, and creditors including a Canadian distributor and a Swiss chocolatier filed lawsuits over unpaid bills.
