Weinstein company to file for bankruptcy after sale talks collapse

The Weinstein Company is set to file for bankruptcy in the following days after talks to sell assets to an investor group collapsed.

The company has been wading through financial problems since dozens of actresses and employees came forward to accuse co-founder Harvey Weinstein of sexual misconduct, intimidation and worse.

The firm was planning on reaching a sale deal with a group led by Maria Contreras-Sweet, who ran the Small Business Administration under President Barack Obama. The group had proposed to pay $275m for Weinstein Co and cover $225m in debt.

Talks collapsed two weeks ago when the New York State filed a lawsuit against the Weinstein Company.

"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the Board has no choice but to pursue the only viable option to maximize the company's remaining value: an orderly bankruptcy process," the board said in a statement.