The Weinstein Co. plans to file for bankruptcy after talks to sell the production studio collapsed.
The company's board sent a letter to investors leading a bid group Sunday breaking off negotiations. The board said it made clear it needed a financial lifeline to keep the company afloat during negotiation talks, but that money was never provided.
The Weinstein Co. had been looking to sell at least part of its various divisions even before dozens of women accused one of its co-founders, Harvey Weinstein, of sexual misconduct.
And it looked like they were finally closing in on a $500 million deal to sell the entire company. But talks reportedly stalled earlier this month after the New York attorney general filed a civil rights lawsuit against it and Harvey and Bob Weinstein.
Variety reported a deal still seemed possible as of last week, though, after Attorney General Eric Schneiderman met with members of the Weinstein board and businesswoman Maria Contreras-Sweet, who's been leading the investor group.
But in its letter, The Weinstein Co., which produced and distributed Oscar-winning films like "Silver Linings Playbook" and "The King's Speech," told investors "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."
