Woman-led investor group to buy Weinstein Co assets
A former Obama administration official on Thursday reached a deal to purchase assets of The Weinstein Company and said she will use a majority-female board to rebuild the Hollywood studio tarnished by sexual misconduct allegations.
Former Small Business Administration chief Maria Contreras-Sweet plans to launch a new company, save about 150 jobs, protect the small companies that are owed money, and create a victims’ compensation fund that will supplement existing insurance coverage for those who have been harmed, she said in a statement. “This next step represents the best possible pathway to support victims and protect employees,” ContrerasSweet said.
The Weinstein Company’s board of directors confirmed it had reached a deal with Contreras-Sweet and supermarket billionaire Ron Burkle.
The studio nearly went bankrupt after more than 70 women accused co-founder Harvey Weinstein, then one of Hollywood’s most influential men, of sexual misconduct including rape. Weinstein denies having non-consensual sex with anyone.
The company last month was close to inking a deal for more than $500 million to be taken over by investors led by Contreras-Sweet and Burkle.
But New York Attorney General Eric Schneiderman upended the negotiations on February 11 by filing a suit against the Weinstein Company, Harvey Weinstein and his brother, Bob.