Harvey Weinstein's Company to Declare Bankruptcy

The Weinstein Company will declare bankruptcy after a $500 million deal to sell the company collapsed.

The company, which was co-founded by Harvey and Bob Weinstein, made the announcement on Sunday (February 25), according to Variety.

A sale was close to being announced exactly two weeks ago, but the lawsuit filed by New York Attorney General Eric Schneiderman reportedly caused the deal to fizzle.

“Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement – much less to close one – and no desire to save valuable assets and jobs,” a letter from the company to the bidding group lead investors Ron Burkle and Maria Contreras-Sweet reads.

The bid group was reportedly unwilling to put immediate cash up to keep the company afloat with their operating expenses.

“We will now pursue the Board’s only viable option to maximize the Company’s remaining value: an orderly bankruptcy process.”

For the full letter, head to Variety.com.