Bob Weinstein, brother of Harvey Weinstein, said the mini-studio they founded in 2005 is not shutting down or for sale despite sexual harassment and assault allegations against his brother that have imperiled the company, according to the Los Angeles Times.
“Our banks, partners and shareholders are fully supportive of our company and it is untrue that the company or board is exploring a sale or shutdown of the company,” Weinstein said Friday in an emailed statement to the Times.
But Weinstein’s statement was immediately contradicted by a high-level person within the studio who was not authorized to comment.
“It’s just not true,” the source who declined to be named told the newspaper, adding that the only remaining hope for the studio and its backers is to sell it off in pieces, allowing investors and lenders to extract whatever value is left.
Weinstein, now the lone chairman of Weinstein Co., has been trying to save the company after allegations of misconduct against his brother surfaced last week. The business has come under pressure from its lenders to sell as a whole or in pieces, and potential buyers already have begun to circle, the Times reported.
Already, at least one investor has publicly indicated it wants out. Investment banking giant Goldman Sachs said Friday it is exploring options for what to do with its small stake in the movie and TV company. The New York bank helped finance the creation of the Weinstein Co. in 2005 by raising close to $1 billion.
The firm’s stake is now worth less than $1 million, according to Goldman Sachs spokesman Andrew Williams. He did not say how much of the company Goldman Sachs owns.
“There is no place for the inexcusable behavior that has been reported, and we strongly condemn it,” Williams said in a statement regarding the accusations against Harvey Weinstein.
— City News Service
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