Weinstein Co. will declare bankruptcy after sale collapses

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.”

22 PHOTOS
Harvey Weinstein with Clinton, Obama and other top Democrats
See Gallery
Harvey Weinstein with Clinton, Obama and other top Democrats
NEW YORK, NY - APRIL 24: United States Secretary of State Hillary Clinton, Georgina Chapman and Harvey Weinstein attend the TIME 100 Gala celebrating TIME'S 100 Most Infuential People In The World at Jazz at Lincoln Center on April 24, 2012 in New York City. (Photo by Kevin Mazur/WireImage for TIME)
NEW YORK, NY - APRIL 24: United States Secretary of State Hillary Clinton, Georgina Chapman and Harvey Weinstein attend the TIME 100 Gala celebrating TIME'S 100 Most Infuential People In The World at Jazz at Lincoln Center on April 24, 2012 in New York City. (Photo by Kevin Mazur/WireImage for TIME)
NEW YORK CITY, NY - OCTOBER 6: Harvey Weinstein and Bill Clinton attend Special Premiere of SPEAK TRUTH TO POWER to Benefit the Kennedy Center with Former President Bill Clinton as Guest of Honor at Pier Sixty on October 6, 2006 in New York City. (Photo by Patrick McMullan/Patrick McMullan via Getty Images)
NEW YORK CITY, NY - OCTOBER 6: (L-R) Kerry Kennedy, Harvey Weinstein, Ethel Kennedy, Bill Clinton and Mary Richardson Kennedy attend Special Premiere of SPEAK TRUTH TO POWER to Benefit the Kennedy Center with Former President Bill Clinton as Guest of Honor at Pier Sixty on October 6, 2006 in New York City. (Photo by Patrick McMullan/Patrick McMullan via Getty Images)
Hillary Rodham Clinton, Harvey Weinstein during Miramax premiere of 'Finding Neverland' at Brooklyn Museum of Art in Brooklyn, New York, United States. (Photo by Sylvain Gaboury/FilmMagic)
Marty Markowitz, Hillary Rodham Clinton, Harvey Weinstein (Photo by Sylvain Gaboury/FilmMagic)
NEW YORK - OCTOBER 25: Senator Hillary Clinton and Miramax boss Harvey Weinstein arrive at the Brooklyn Museum for the premiere of Miramax Films 'Finding Neverland' October 25, 2004 in New York City. (Photo by Evan Agostini/Getty Images)
President Bill Clinton and Miramax Chief, Harvey Weinstein at Hillary Clinton's Birthday Party at the Hudson Hotel in New York City. October 25, 2000 (Photo: Nick Elgar/ImageDirect)
President Bill Clinton and Miramax Chief, Harvey Weinstein at Hillary Clinton's Birthday Party at the Hudson Hotel in New York City. October 25, 2000 (Photo: Nick Elgar/ImageDirect)
375603 02: President Clinton talks with Miramax studio boss Harvey Weinstein, center, and an unidentified woman August 7, 2000 at West Chop Lighthouse on Marthas Vineyard, MA. The Clintons attended a fund-raiser for the first lady at Weinstein's home. (Photo by Stephen Rose/Newsmakers)
UNITED STATES - DECEMBER 03: First Lady Hillary Rodham Clinton is joined by actress Gwyneth Paltrow (center) and Harvey Weinstein at the premiere of 'Shakespeare in Love' at the Ziegfeld Theater. Paltrow stars in the movie; Weinstein produced it. (Photo by Richard Corkery/NY Daily News Archive via Getty Images)
UNITED STATES - Gwyneth Paltrow (L), Hillary Rodham Clinton, and Harvey Weinstein at the film premiere of 'Shakespeare in Love.' (Photo by The LIFE Picture Collection/Getty Images)
LOS ANGELES, CA - APRIL 20: Producer Harvey Weinstein and actress Jennifer Lawrence presents Former President of the United States Bill Clinton with the Advocate for Change Award onstage during the 24th Annual GLAAD Media Awards presented by Ketel One and Wells Fargo at JW Marriott Los Angeles at L.A. LIVE on April 20, 2013 in Los Angeles, California. (Photo by Kevin Tachman/Getty Images for GLAAD)
WASHINGTON, DC - NOVEMBER 20: (L-R) Harvey Weinstein, Senator John McCain, (R-AZ), Hillary Clinton and General Colin Powell attend the 'Mandela: Long Walk To Freedom' premiere presented by The Weinstein Company and sponsored by American Express and South African Airlines at The John F. Kennedy Center for Performing Arts on November 20, 2013 in Washington, DC. (Photo by Larry French/Getty Images)
U.S. first lady Michelle Obama gets animated while hosting a workshop at the White House for high school students about careers in film in Washington November 8, 2013. Also pictured is producer Harvey Weinstein (L) and actress Blake Lively (R). REUTERS/Kevin Lamarque (UNITED STATES - Tags: POLITICS ENTERTAINMENT)
Film producer and studio executive Harvey Weinstein laughs at remarks directed at him by U.S. first lady Michelle Obama as she hosts a workshop at the White House for high school students about careers in film in Washington November 8, 2013. At right is actress Whoopi Goldberg. REUTERS/Kevin Lamarque (UNITED STATES - Tags: POLITICS ENTERTAINMENT)
Senator Obama, Harvey Weinstein, Senator Lautenberg and Senator Schumer *EXCLUSIVE* ***Exclusive*** (Photo by Sylvain Gaboury/FilmMagic)
WASHINGTON, DC -- NOVEMBER 8: First Lady Michelle Obama hosts a workshop at the White House for high school students from DC, New York and Boston about careers in film on Friday, November 8, 2013. Over the years, Mrs. Obama has opened the White House to students to learn about everything from music to diplomacy, sports to poetry. On the panel from left to right are director David Frankel, director Ryan Coogler, production executive Harvey Weinstein, actress Whoopi Goldberg, actress Blake Lively, obscured from view, actress Naomie Harris, producer Bruce Cohen, and editor-at-large of The Oprah Magazine Gayle King. (Photo by Nikki Kahn/The Washington Post via Getty Images)
NEW YORK, NY - DECEMBER 21: Producer and studio executive, Harvey Weinstein in attendance as U.S. Senator Charles E. Schumer commemorates last week's change in federal tax law benefits with Broadway Stars at Sardi's on December 21, 2015 in New York City. (Photo by John Lamparski/Getty Images)
NEW YORK, NY - DECEMBER 21: Studio Executive Harvey Weinstein attends as U.S. Senator Charles E. Schumer commemorates last week's change in federal tax law benefits with Broadway Stars at Sardi's on December 21, 2015 in New York City. (Photo by John Lamparski/Getty Images)
NEW YORK, NY - DECEMBER 21: US Senator Charles E. Schumer, Matthew Morrison and Studio Executive Harvey Weinstein attend as U.S. Senator Charles E. Schumer commemorates last week's change in federal tax law benefits with Broadway Stars at Sardi's on December 21, 2015 in New York City. (Photo by John Lamparski/Getty Images)
NEW YORK, NY - APRIL 29: Kirsten Gillibrand and Harvey Weinstein attend the TIME 100 Gala, TIME's 100 most influential people in the world, at Jazz at Lincoln Center on April 29, 2014 in New York City. (Photo by Jemal Countess/Getty Images for TIME)
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

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.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.