A last attempt to save the Weinstein Co. has failed, the company announced late Sunday, and instead they will go ahead with bankruptcy.
Just days after a three-hour meeting with Attorney General Eric Schneiderman, investor Ron Burkle and Maria Contreras-Sweet, the former head of the Small Business Administration, the Weinstein Co. board of representatives issued a memo insisting that the new buyers had not fulfilled their promises, including a “gold standard” human resources policy.
“We have believed in this Company and in the goals set forth by the Attorney General. 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 memo read.
“This Board will not let that happen. 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.”
The failed acquisition, which was supposed to go forward as recently as Wednesday, was expected to cost $500 million. An original deal was halted after Schneiderman’s office filed a civil rights lawsuit against the company and founders Harvey and Bob Weinstein.
The sale of the long-standing company, which has produced movies including “The Artist,” “King’s Speech” and “The Reader,” comes after Harvey Weinstein has been accused of sexual misconduct by more than 100 women in alleged assaults spanning decades.
“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,” the memo read.