The Weinstein Company’s board of directors are to file for bankruptcy protection after last-ditch talks to sell its assets collapsed.
They have been searching for a financial saviour since Harvey Weinstein, who co-founded the film studio 13 years ago, became the subject of sexual assault and harassment allegations by dozens of women last autumn.
The claims prompted business to drop away from the movie mogul – later fired by the board in October. Weinstein has denied all allegations of non-consensual sex.
The directors last night abandoned hopes of finding a buyer for Weinstein Co’s assets.
They said: “While we recognise that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice.
“Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.”
At one stage they were in talks with an investor group over a $500m (£358m) sale.
It was reported that, as part of that deal, the bidders had promised to raise at least $40m for a fund to compensate Weinstein’s accusers.
The disgraced producer and the firm are facing a slew of court cases over his alleged behaviour.
While it is unclear exactly which route the directors will take in the reported bankruptcy protection, the process in the US would allow Weinstein Co to stop trading and manage an orderly sale for creditors.