The Board of Directors for The Weinstein Co. announced on Sunday night it will file for bankruptcy after talks to sell the company fell apart.
"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the Board has no choice but to pursue the only viable option to maximize the company's remaining value: an orderly bankruptcy process," the board said in a statement.
The studio, which was co-founded by Harvey Weinstein, had been in talks with an investor group led by Maria Contreras-Sweet, a former head of the Small Business Administration under President Barack Obama. The deal began to fall apart after the New York Attorney General filed a lawsuit against the company alleging a gender-based hostile work environment, a pattern of sexual harassment and routine misuse of corporate resources for unlawful ends.
Weinstein was fired from his position at the company last October after several women came forward to accuse of various acts of sexual misconduct.