After weeks of uncertainty and collapsed deals, Variety is now reporting that, as suspected, the Weinstein Company has filed for bankruptcy, an outcome that felt almost unavoidable after the company was rocked by the many, many sexual-harassment and -assault allegations against disgraced studio head Harvey Weinstein. The sale of TWC to an investor group lead by former Obama administration cabinet member Maria Contreras-Sweet and billionaire Ron Burkle fell through earlier this month. On Monday, the Weinstein Company released a statement expressing hopefulness about a new investor, Lantern Capital Partners, who submitted a “stalking horse†bid to purchase the company in advance of a potential bankruptcy auction. “The Board selected Lantern in part due to Lantern’s commitment to maintain the assets and employees as a going concern,†TWC said in the statement. “The Company hopes that this orderly sale process under the supervision of the Bankruptcy Court will allow it to maximize the value of the Company’s assets for the benefit of its creditors and other stakeholders.â€
While new ownership seems like a profound enough change as it is, the Weinstein Company also announced that they have released their employees from their nondisclosure agreements. The decision is, according to Variety, “part of an ongoing negotiation†with New York attorney general Eric Schneiderman. “Since October, it has been reported that Harvey Weinstein used nondisclosure agreements as a secret weapon to silence his accusers. Effective immediately, those ‘agreements’ end,†TWC’s statement reads. “No one should be afraid to be afraid to speak out or coerced to stay quiet.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.â€