US media reports have said the search for a financial savior for The Weinstein Company has been unsuccessful. They added the board of directors was now eyeing an orderly bankruptcy process to contain the damage.
Several media outlets reported the board of directors of The Weinstein Company said Sunday night the New York film and TV studio planned to file for bankruptcy after talks to sell it failed.
The firm had been seeking a deal that would spare it from bankruptcy after more than 70 women accused film producer Harvey Weinstein of sexual misconduct including rape.
"The Weinstein Company has been engaged in an active sale process in the hopes of preserving assets and jobs," the board said in a statement reported by newspapers including the San Francisco Chronicle and the Los Angeles Times."
"Today, those discussions concluded without a signed agreement."
No compensation fund yet
It added the board had "no choice but to pursue its only viable option to maximize the firm's remaining value — an orderly bankruptcy process."
The decision came after the board was unable to revive a deal to sell the struggling studio for about $500 million (€406 million) to an investor group.
As part of the pact, the bidders had originally promised to raise at least $40 million for a fund to compensate Weinstein's accusers.
hg/jd (Reuters, AP)