The New York Times reports that the Weinstein Company will file for bankruptcy “in the coming days.” In a statement released on Sunday, the studio says, “While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice.” A deal to sell TWC to a group of investors headed by businesswoman and former Obama administration cabinet member Maria Contreras-Sweet started to collapse earlier this month after New York Attorney General Eric Schneiderman’s office filed a suit against the studio. In the lawsuit, the DA alleged the company violated “numerous New York civil rights, human rights, and business laws” related to former studio head Harvey Weinstein’s “unrelenting sexual harassment, intimidation, and discrimination” in the workplace.
According to the Times, in a letter sent to Contreras-Sweet and backer Ron Burkle, the Weinstein Company claims the investor group failed to provide the interim funding needed to sustain TWC as the company changed hands. “Late last night, you returned to us an incomplete document that unfortunately does not keep your promises,” the letter claims. “That is regrettable, but not in our power to change.”