The Weinstein Co. has filed for bankruptcy, the company announced Monday, after dozens of women accused co-founder Harvey Weinstein of sexual misconduct and harassment.
Several women came forward last fall with their allegations of abuse against Weinstein, at the time one of the most powerful producers in Hollywood, and as more and more accusations were made, the company couldn't stay afloat. Earlier this month, a group of investors announced they made a deal to buy the Weinstein Co., but that collapsed after it was determined the company had more debt than previously disclosed.
The Weinstein Co.'s board announced Monday that the private equity firm Lantern Capital has made a "stalking horse" bid for the company's assets, which sets a floor for a bankruptcy auction. As part of its negotiations with New York Attorney General Eric Schneiderman, some of the Weinstein Co.'s employees have also been released from nondisclosure agreements. "No one should be afraid to speak out or be coerced to stay quiet," the Weinstein Co. said in a statement. "The company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world." Catherine Garcia
The company announced it has reached an agreement with creditors to restructure $1.9 billion in debt, and is "confident" it will emerge from bankruptcy protection in September. The chain has 1,600 locations in the United States, mostly in malls, which don't have the foot traffic they used to due to competition from big box stores and online merchants. Just remember this: You may be able to buy glittery nail polish and bejeweled headbands online, but good luck getting Alexa to pierce your ears. Catherine Garcia