by Mallory Carlson ‘19
The Weinstein Company, the film and media powerhouse co-founded by the Weinstein brothers in 2005, on Sunday announced its plan to file for bankruptcy. The announcement shortly followed the collapse of a potential sales deal with an investor group led by Maria Contreras-Sweet, who also was the 24th Administrator of the Small Business Association from 2014-2017. The sale would have sold the Weinstein Company to Contreras-Sweet’s group for about $275 million, plus the assumption of $225 million in debt.
The failed deal adds to the company’s woes, after its popularity and value plummeted following the New York Times exposé in October detailing various accounts of alleged sexual misconduct committed by co-founder Harvey Weinstein, which also had a hand in causing the momentous #MeToo movement. Although Weinstein, through a spokesperson, denied all accusations of nonconsensual sex, the company suffered greatly from the negative publicity and appears to be suffering the consequences.
“While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice,” the company’s statement reads. “Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.”