The Weinstein Company will not go under after all.
The besieged company, founded by Harvey and Bob Weinstein, will be bought after all by an investment team led by billionaire Ron Burkle and Maria Contreras-Sweet, the former head of President Obamas Small Business Administration, they announced late Thursday.
Those principles have never wavered and have always been to build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims compensation fund that would supplement existing insurance coverage for those who have been harmed, Contreras-Sweet said in a statement.
The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency. This next step represents the best possible pathway to support victims and protect employees.
Weinstein Co. will declare bankruptcy after sale collapses
The news comes just days after the companys board of representatives said it would not approve the sale and insisted that the new buyers had not fulfilled their promises, including a gold standard human resources policy.
We have believed in this Company and in the goals set forth by the Attorney General. Based on the events of the past week, however, we must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents, the board said in a memo Sunday night.
This Board will not let that happen. Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement much less to close one and no desire to save valuable assets and jobs. That is regrettable, but not in our power to change.
An original deal was halted after Attorney General Eric Schneidermans office filed a civil rights lawsuit against the company and the Weinsteins after more than 100 allegations of sexual misconduct leveled against Harvey Weinstein.
The Weinstein Company board of directors announced the sale late Thursday.
“The deal provides a clear path for compensation for victims and protects the jobs of our employees,” the statement read. “We consider this to be a positive outcome under what have been incredibly difficult circumstances.
Schneiderman also issued a statement on the sale.
“As I made clear from the start, our office will support a deal that ensures victims will be adequately compensated, employees will be protected moving forward, and those who were responsible for misconduct at TWC will not be unjustly rewarded,” the AG said.
“As part of these negotiations, we are pleased to have received express commitments from the parties that the new company will create a real, well-funded victims compensation fund, implement HR policies that will protect all employees and will not unjustly reward bad actors.”
The office also said that its lawsuit and investigation will remain ongoing.