Female-led investor group to buy Weinstein Company assets

Former Obama administration official Maria Contreras-Sweet plans to launch a new company, save 150 jobs and create a victims' compensation fund

Lisa Richwine,Karen Freifeld
Friday 02 March 2018 10:02 GMT
Comments
Maria Contreras-Sweet was chief of the Small Business Administration under Barack Obama
Maria Contreras-Sweet was chief of the Small Business Administration under Barack Obama (Reuters)

Support truly
independent journalism

Our mission is to deliver unbiased, fact-based reporting that holds power to account and exposes the truth.

Whether $5 or $50, every contribution counts.

Support us to deliver journalism without an agenda.

Louise Thomas

Louise Thomas

Editor

A former Obama administration official has 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 chief of the Small Business Administration Maria Contreras-Sweet plans to launch a new company, save around 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,” Ms Contreras-Sweet said.

The Weinstein Company’s board of directors confirmed it had reached a deal with Ms 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 $500m (£362m) to be taken over by investors led by Ms Contreras-Sweet and Mr Burkle.

But New York Attorney General Eric Schneiderman upended the negotiations on 11 February by filing a suit against the Weinstein Company, Harvey Weinstein and his brother, Bob, alleging that Harvey Weinstein sexually harassed employees and the company failed to respond. The company early this week said it planned to file for bankruptcy.

On Thursday evening, Ms Contreras-Sweet, the Weinstein Company and Mr Schneiderman said they had worked together to bring about the deal. In a statement, Mr Schneiderman said he had received commitments that a well-funded victims compensation fund would be created, that new policies would protect employees and that “bad actors” would not be unjustly rewarded.

He said he would ensure the final deal honoured the agreed terms and that the lawsuit would remain active in the meantime.

A person familiar with the matter said the parties hammered out the deal in a conference room in Mr Schneiderman’s office on Thursday evening. The compensation fund will be $80m-90m, they said.

Launched in October 2005, the studio produced and distributed critically acclaimed box office hits including The King’s Speech and Silver Linings Playbook. Harvey Weinstein was known as the leading tastemaker for independent film and a master at Academy Awards campaigns.

His company also produced television series including the long-running fashion competition show Project Runway.

When the allegations against Harvey Weinstein became public, the company’s board fired him, and Hollywood heavyweights distanced themselves from the studio.

Since then, similar allegations have been levelled against many powerful men in business, politics and entertainment, and the #MeToo movement has emerged, using social media to share stories of harassment and abuse.

Reuters

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in