The Weinstein Company says the US film studio, whose ex-chairman Harvey Weinstein has been accused of sexual harassment and assault, planned to file for bankruptcy in the coming days after talks to sell itself collapsed.
Filing for bankruptcy protection creates more uncertainty about how women who allege they are victims of Weinstein could be compensated.
The scuppered deal had a provision for a victims' fund, but in bankruptcy the women may be treated as unsecured creditors that can recoup only pennies on the dollar for their claims.
The Weinstein Company had been close to inking an agreement this month to be taken over by investors led by former Obama administration official Maria Contreras-Sweet for more than $US500 million ($A700 million), but a lawsuit filed by New York's Attorney General Eric Schneiderman on February 11 complicated the negotiations.
Schneiderman had wanted any deal to provide adequate compensation to women who said they were victims of Weinstein, protect the company's employees and to not reward executives who allegedly knew of the abuse.
Schneiderman's office said in a statement on Monday it was disappointed in the collapse of the deal discussions, which included a commitment from the buyers for up to $US90 million in victim compensation, and that it would continue to investigate alleged abuse by Weinstein.
More than 70 women have accused Weinstein, once one of Hollywood's most influential men, of sexual misconduct including rape. Weinstein denies having non-consensual sex with anyone.
Others said the bankruptcy would not necessarily limit claims and could introduce more oversight to the creation of a victims' fund.
Contreras-Sweet's latest offer did not meet the requirements of Schneiderman's office and did not set aside enough money to ensure the company's approximately 150 employees would be paid while waiting for the deal to close, according to a letter from the board of directors of The Weinstein Company to Contreras-Sweet and one of her investors, billionaire Ron Burkle of The Yucaipa Companies LLC.
The Weinstein Company, which Reuters has reported as having debts of roughly $US375 million, launched in October 2005 and has produced and distributed films including The King's Speech and Silver Linings Playbook.
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