The Weinstein Company is heading into bankruptcy.
Variety reports the production company, co-founded by embattled producer Harvey Weinstein, had been in sale talks since allegations of sexual misconduct against Weinstein emerged in October 2017.
On Sunday, The Weinstein Company board members released a letter announcing that after a $500-million deal for investors to purchase the company fell apart, the company will declare bankruptcy.
According to Variety, the deal had been close to being finalized two weeks ago until New York Attorney General Eric Schneiderman filed a lawsuit against the company alleging that they had covered up Weinstein’s alleged behaviour, which caused the deal to fall apart.
Harvey Weinstein resigned from the company in October.