The Weinstein Company has filed for bankruptcy and is set to release all former employees from the non-disclosure agreements they signed.
Victims and those who have witness Harvey Weinstein’s misconduct will now be able to speak out about their experiences with the cancellation of non-disclosure agreements.
The Weinstein Company filed for bankruptcy protection on Tuesday with a private equity firm set to buyout the production company. This is just the latest twist in events as the company attempts to deal with the fallout from the sexual misconduct claims against its founder Harvey Weinstein.
In doing so, the company has also agreed to release all of the victims and witnesses of Harvey Weinstein’s misconduct from the non-disclosure agreements that they had to sign as employees. This has been long sought after by Eric Schneiderman, a New York State Attorney-General, who filed the lawsuit on behalf of all employees and victims.
The Weinstein Company is set to be sold to Lantern Capital Partners assuming the court gives approval of the sale. The Weinstein Company was initially going to be sold to a group of investors, however, the deal fell apart. Lantern Capital Partners was one of the initial investors and have now agreed to take on the company on their own as well as keep its employees.
Many men within the entertainment industry have lost their jobs or had their career severely impacted by allegations of sexual misconduct, however, none such as heavily as Harvey Weinstein. Nor have any other men had their company so closely intertwined with the allegations and thus seen it collapse.
Weinstein was fired as CEO of The Weinstein Company in October and the fallout has been immense. The fallout has been big that the governor of New York has directed the Attorney-General to review a case regarding an allegation towards Mr. Weinstein involving an Italian model in 2015.
Filing for bankruptcy protection ensures that no more cases and allegations against Mr. Weinstein can impact on the company’s assets or finances ensuring that investors receive their fair payments should bankruptcy occur.
With the bankruptcy protection filing, The Weinstein Company’s finances will now be in the public eye. Much of the news involves the large debt that the company is currently in with additional liabilities on top of the US$225 million that the company is already in debt.
After being founded in 2005, The Weinstein Company gained success with The Artist and The Kings Speech before the company’s output slowed in more recent times. The company has continually reshuffled since letting go of 50 employees in 2016.
Many executives and board members have also left the company as it fades away from relevance. Such is the shortage of cash, The Weinstein Company sold the distribution rights for Paddington 2 for US$30 million to Warner Brothers.