The film studio co-founded by disgraced movie mogul Harvey Weinstein, responsible for blockbuster movies including Django Unchained, The King’s Speech and Silver Linings Playbook, is set to file for bankruptcy.
Talks to sell the Weinstein Company’s assets have collapsed, according to reports in the US media, leaving board members no choice but to prepare for bankruptcy.
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The company has been in trouble since October, when the New York Times published a story detailing allegations of decades of sexual harassment by Harvey Weinstein.
In the wake of the allegations, Weinstein was sacked by the board of the company he co-founded with his brother Bob in 2005.
The revelations were a blow to the finances of the Weinstein Company, which almost immediately began looking for buyers and sold the rights to two of its films, Paddington 2 and The Six Billion Dollar Man, to rival studios Warner Bros.
The decision to file for bankruptcy comes two weeks after the New York attorney general’s office filed a civil rights lawsuit against the Weinstein Company.
“While we recognise that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice,” a statement from the company explaining the plan to file for bankruptcy said according to the New York Times. “Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court.”