The Weinstein Company Has Announced They Will Declare Bankruptcy
Four months ago, Harvey Weinstein was given a farewell party by The Weinstein Company after dozens of sexual assault/harassment allegations were made against him. Harvey is no longer part of the company he co-founded with his brother Bob Weinstein. Bob, who reportedly didn’t want anything to do with his brother to begin with, was rumored to want to change the name of the company, which was followed by trying to sell it. Then there was talk that the sale might not go through, and it looked like TWC would end up declaring bankruptcy. Much like the dirtiest, greasiest Tupperware bowl at a yard sale, nobody bought TWC. So bankruptcy it is.
Variety says that TWC announced that they will declare bankruptcy after a $500 million purchase negotiation by investors Ron Burkle and Maria Contreras-Sweet fell through. According to a letter released by the company, TWC informed Burkle and Contreras-Sweet that TWC needed cash badly, and was hoping to get a float while they worked out the sale. But Ron and Maria failed to provide an allowance TWC was happy with, so the deal was canceled. The letter also accused investors of leading them on, and of having no intention of – to borrow a phrase from a shitty hat – Making TWC Great Again.
“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. 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.”
Variety points out that TWC’s bankruptcy announcement comes two weeks after the New York Attorney General Eric Schneiderman filed a lawsuit against TWC. Eric Schneiderman was worried the sale of TWC would leave employees broke while board members made out like bandits. Ron and Maria met with Eric last week to discuss the sale’s impact on the lawsuit, and they reportedly all agreed a deal could be struck that would meet Schneiderman’s approval. Still, Variety believes the lawsuit it probably a big part of the reason the negotiations got messy.
The Weinstein Company hasn’t officially filed for bankruptcy yet, but that’s the plan.
Normally when a company goes ass-up, you’d expect to see them try to make a little cash by selling everything in the office for cheap, but I have a feeling TWC isn’t going to have much luck with that. They won’t be able to give stuff away for free curbside if there’s even a chance Harvey Weinstein’s made contact with it. Although that’s great news for dirty mattresses with a “No Bedbugs” sign taped to it; for once they won’t be the least-desirable piece of used furniture on the street.
Pic: Wenn.com