The Weinstein Company has accepted a bid from an investor group
After months of controversy, The Weinstein Company board has accepted a bit to sell the assets to an investor group, according to Variety. In a statement, they announced the news of the deal reached with an investor group lead by Maria Contreras-Sweet and Ron Burkle. The company was facing bankruptcy.
The statement from The Weinstein Company reads as follows: “We are pleased to announce that we have entered into an agreement to sell the assets of The Weinstein Company to an investor group led by Maria Contreras-Sweet and Ron Burkle. The deal provides a clear path for compensation for victims and protects the jobs of our employees. We greatly appreciate the efforts of Attorney General Schneiderman and his staff, Maria Contreras-Sweet, Ron Burkle and his team at Yucaipa for bringing about this agreement. We consider this to be a positive outcome under what have been incredibly difficult circumstances.”
The Weinstein Company agreement will allow the group to launch a female-led studio. The board of directors will be made up of a majority of women. 150 employees will keep their jobs, there will be a fund created to compensate the victims of sexual harassment, and small businesses who are owed money by The Weinstein Company will now be protected.
In a statement, Contreras-Sweet said: “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. Those principles have never wavered and have always been to build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims’ compensation fund that would supplement existing insurance coverage for those who have been harmed. The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency.
“This next step represents the best possible pathway to support victims and protect employees.
“We are grateful to the New York State Attorney General’s office for their efforts in helping us reach an agreement and we are grateful to our investors who have believed in this process and in the compelling value of a female-led company. We also want to thank all the parties who returned to the negotiating table to help us reach this development.
“I have had a long-standing commitment to fostering women ownership in business. This potential deal is an important step to that end.”
The deal was reached after a number of issues over the past two weeks. The board now expects to announce release dates for a number of films, including The Current War.