The Weinstein Company’s reputation at a point of no return as they file for bankruptcy
In November of last year, we published a feature about the sexual harassment allegations within the film industry and how this impacted the brands and films associated with the celebrity in question.
The Weinstein Company are now undergoing a bankruptcy process. As quoted by The Drum, the directors stated that the decision came after a group of investors withdrew their deal.
The Guardian’s report expands on the collapse of the sales deal responsible for the Weinstein Company filing for bankruptcy. The deal with Contreras-Sweet’s consortium came to end after a law suit was filed against the Weinstein Company from the New York Attorney general’s office.
In a letter to Contreras-Sweet and Burkle, the Weinstein Company stated, ‘While acceding to virtually every demand you imposed … we waited patiently for you to deliver the terms you represented would save this company from certain bankruptcy.’
The demands that the letter refers to is the renaming of the company and the introduction of a new board, most of which would be women.
However, according to the Weinstein Company the offer letter ‘presents no viable option for a sale’. In addition, the letter also accuses the investor group for leading them on and not fulfilling the request of interim funding to pay the 150-employees operating the studio.
A company that was worth $800 million two years ago (according to The Guardian) and produced Oscar winning films is now filing for bankruptcy. Would this have happened if the company hadn’t been called ‘The Weinstein Company’?
Image credit: ‘Bankruptcy’ by Nick Youngson Licensed by CC BY-SA 3.0