The Weinstein Company is to undergo an ‘orderly bankruptcy process’ according to its directors after talks to sell the scandal plagued business to a group of investors fell through.
The New York film studio's links to co-founder Harvey Weinstein ultimately proved to be its downfall with the movie producer's fall from grace bringing his commercial empire down with him after dozens of women stepped forward to make allegations of sexual abuse and rape. He denies the allegations of non-consensual sex.
In a statement the board wrote: “The Weinstein Company has been engaged in an active sale process in the hopes of preserving assets and jobs. Today, those discussions concluded without a signed agreement.”
The final nail in the coffin for the business is believed to have come a fortnight ago when the New York attorney general's office filed a civil rights lawsuit against the business which accuses Weinstein of sexually harassing and abusing female employees as well as making death threats.
Prosecutors contend that senior directors within the company, including Weinstein’s own brother Robert, failed to intervene on employees' behalf, thus allowing the abuse to continue for years.
Such is the toxicity of the Weinstein brand that many brands and partners have already cut ties with the studio including Toyota Lexus and Amazon Studios while the business must also contend with a $133,000 lawsuit filed by Lindt chocolate over its cancelled sponsorship for the 2018 Golden Globe Awards.
The scandal first broke in October of last year following a report in the New York Times but swiftly snowballed into the #metoo movement as women took to social media to share their own stories.