The once legendary film studio co-founded by Harvey Weinstein and his brother, Bob, has gone bankrupt. The Weinstein Co. announced that it will declare bankruptcy after a $500 million deal to sell the company and its assets collapsed.
According to a letter from the company, the deal was set to happen with the backing of billionaire, Rob Burkle. But talks broke down when disagreements arose concerning interim funding. It was also complicated by a lawsuit filed against the company by the New York Attorney General regarding the "vicious and exploitative mistreatment of company employees".
The lawsuit accuses the company of "egregious violations of state civil and human rights laws." Numerous lawsuits have also been filed, claiming the company's execs knew of Weinstein's behavior and yet covered up for him for decades and coerced employees into staying quiet.
The company once had several interested buyers. But once the scope of Harvey Weinstein's crimes become known, all of them bowed out stating they did not want to take on the burden of reforming the company and potentially having to compensate employees.