Salvation has evaded the Weinstein Company yet again. Though the flailing company was previously set to be rescued by a reported $500 million deal led by businesswoman Maria Contreras-Sweet and billionaire Ron Burkle, it appears the deal has ultimately fallen apart. In a statement Tuesday, Contreras-Sweet revealed that the her plan to salvage the studio has been terminated.
“All of us have worked in earnest on the transaction to purchase the assets of The Weinstein Company,” her statement begins. “However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction. As a result, we have decided to terminate this transaction.”
The decision brings an end to T.W.C.’s shaky past few months, when the organization teetered somewhere between total bankruptcy and potential rescue after Harvey Weinstein’s catastrophic downfall. Rumblings of the deal with Contreras-Sweet began back in January, with rumors that she was planning to revamp the company by installing a majority female-led board and changing its soiled name. However, shortly after that, a letter from T.W.C.’s board revealed that the deal was going poorly; the board claimed that the deal was “ illusory,” ultimately “charting a financial path that will fail.” The board then declared that The Weinstein Company would file for bankruptcy. Not even a week later, Contreras-Sweet released a statement declaring that the deal was back on the table. But now, just four days after that, the deal has evaporated once again; filing for bankruptcy appears to be the company’s next option.
In her latest statement, the businesswoman says the team will “consider acquiring assets that may become available in the event of bankruptcy proceedings.”
“I remain committed to working to advance women’s business ownership in all sectors and to inspire girls to envision their futures as leaders of important companies,” she adds.
Here is the statement in full:
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“All of us have worked in earnest on the transaction to purchase the assets of The Weinstein Company. However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction.
As a result, we have decided to terminate this transaction.
I would like to thank the employees and the board of The Weinstein Company for pursuing this opportunity with us and Attorney General Eric Schneiderman for playing a crucial role at a critical time. I especially want to thank Ron Burkle and The Yucaipa Companies for their advice, showing faith in this deal, and taking an unusual step of subordinating many typical investor board rights to the women who would have led this company. I would like to thank Lantern Asset Management for their early capital commitment and Len Blavatnik for his willingness to look at creative options on the debt side. Lastly, I would like to thank Tarak Ben Ammar.
I believe that our vision to create a women-led film studio is still the correct course of action. To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.
I remain committed to working to advance women’s business ownership in all sectors and to inspire girls to envision their futures as leaders of important companies.”
Yohana DestaYohana Desta is a Hollywood writer for VanityFair.com.
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