The Weinstein Company is set to file for bankruptcy

Following the outing of chairman Harvey Weinstein’s accused cases of sexual misconduct and rape towards more than 70 women, The Weinstein Company’s board of directors have announced the film and TV studio plan to file for bankruptcy.

This comes after plans to sell the influential New York-based empire collapsed, and as reported by the San Francisco Chronicle and the Los Angeles Times, the only option to preserve remaining assets and jobs would be an “orderly bankruptcy process.”

The firm was set to close a deal, selling itself for more than $US500 million to an investor group led by Maria Contreras-Sweet, a former official in Barack Obama’s presidential administration.

New York’s Attorney-General Eric Schneiderman sued the company and Weinstein over his alleged sexual harassment and misconduct, shutting down negotiations.

Schneiderman wanted any deal to provide compensation to Weinstein’s victims, protect employees and withhold from rewarding executives who knew of the ongoing abuse but did nothing to stop it.

A letter to Ms Contreras-Sweet highlights why faith in the deal was lost, stating “we must conclude … would only leave the company hobbling toward its demise”.

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