The Weinstein Company has reached a sale agreement with an investment group.
The world-famous film studio – which was co-founded by disgraced movie producer Harvey Weinstein – looked set to file for bankruptcy earlier this week, but an organisation headed by Maria Contreras-Sweet and billionaire Ron Burkle have struck a deal to purchase the company’s assets.
Maria – a former US Small Business Administration head – said in a statement: "Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company, with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall."
The Weinstein Company is likely to be renamed and a new board of directors, the majority of which are expected to be women, will be put in place.
The New York studio’s board said in a statement: "The deal provides a clear path for compensation for victims and protects the jobs of our employees.
"We consider this to be a positive outcome under what have been incredibly difficult circumstances."
Maria did not disclose the financial details of the deal, which is said to be subject to a 40-day closing period, but sources previously said the bid was worth $500 million, including $225 million in assumption of debt.
Bob Weinstein – Harvey’s brother – is said to have struck the deal, which had previously broken down twice, with Ron and Maria in the office of New York’s Attorney General Eric Schneiderman, and he is expected to leave the company.
The deal’s revival comes after The Weinstein Company revealed earlier this week that talks had broken down for a second time.
They said in a statement: "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."
This comes after Harvey was accused of sexual misconduct by a number of stars, and he was later sacked from the company shortly after the first allegations became public in October last year.
He is currently under investigation by police in the US and the UK, but no charges have yet been brought.
The 65-year-old producer previously admitted he "caused a lot of pain", but he’s also denied many of the accusations he’s now facing.
The Weinstein Company was founded in 2005 by Harvey and Bob, who owns 23 per cent of the firm.
The Weinstein Company reaches sale agreement
