Surprise bidder for movie company
Former Obama official proposes female-majority Weinstein board
A former Obama administration official has submitted a bid to buy the Weinstein Co. and install a majority-female board of directors, in a surprising twist for the beleaguered film and television studio that has been trying to avoid bankruptcy.
Maria Contreras-Sweet, who ran the Small Business Administration from 2014 to 2017, sent a letter to the Weinstein Co. board of directors this month offering to buy the company and assume liabilities related to its operations.
Contreras-Sweet would become chairwoman of the Weinstein Co. board, according to a copy of the letter obtained by the Los Angeles Times. Her letter, first reported by the Wall Street Journal, did not include financial details.
“I believe we have now reached a crossroads where it is imperative that a woman-led board acquire control of the company and create content that continues to inspire audiences around the world, especially our young girls and boys,” Contreras-Sweet said in the letter.
Weinstein Co. representatives did not respond to requests for comment.
Co-founder accused
Such a deal would be a remarkable development for the onetime independent film powerhouse, which has spent more than a month confronting sexual harassment and assault allegations against its cofounder Harvey Weinstein.
Last week, Weinstein Co. got a much-needed financial lifeline when it sold its North American distribution rights for “Paddington 2” to Warner Bros. in a deal worth about $30 million, which it split with French-owned StudioCanal. People close to the studio said the money will help keep the Weinstein Co. out of Chapter 11 bankruptcy protection as it explores options.
Compensate victims
As a condition of a deal with Contreras-Sweet and her financial backers, the company would have to set up a mediation process and litigation fund to compensate alleged victims of Weinstein, the letter said.
According to the letter, Contreras-Sweet and her financial backers discussed their proposal with attorney Gloria Allred, who represents several of Weinstein’s accusers. Last week, an anonymous actress represented by Allred sued Weinstein for alleged battery and assault.
Separately, a classaction lawsuit was filed against the company on behalf of dozens of women accusing Weinstein of sexual assault, battery and lewd conduct.
Allred, in a statement, said she supports the Contreras-Sweet bid.
“Saving the company will benefit employees, shareholders, vendors, and if her proposal is accepted, it will be very important to victims,” Allred said.
Contreras-Sweet was born in Guadalajara, Mexico, and came to the U.S. with her mother and five siblings when she was 5. In 2006, she founded Pro-America Bank, which was developed to support small and medium-sized businesses, especially in the Latino community.