It might be curtains for the Weinstein Company. On Wednesday, the New York Times reported that the previously agreed-upon cash-infusion deal from Colony Capital has been retracted. The private-equity firm, which is run by Donald Trump ally Thomas J. Barrack Jr., allegedly discovered that TWC might not be worth the investment. Sources told the Times, “Colony found more disorder than it had expected — and less value — once it started closely examining the studio’s assets.†The anonymous insiders also informed the paper that bankruptcy was the “most likely near-term outcome.â€
While there are several options that might save the company from financial ruin — like selling assets or a loan from another investment firm — things are not looking great for the studio. Women continue to come forward to accuse co-founder Harvey Weinstein of sexual harassment and assault, with the total now reaching over five dozen. One accuser is suing the company for $5 million for their alleged complicity in the cover-up. And, just today, three Weinstein-released movies have announced that they will be terminating their relationship with the company moving forward.