Weinstein Co Hires Consultants to Discuss Sale, Strategic Options

The independent studio is in flux after numerous sexual misconduct allegations against Harvey Weinstein

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The Weinstein Co. has engaged FTI Consulting to advise on a possible sale or restructuring, an individual with knowledge of the situation told TheWrap.

Scores of women have accused the longtime Hollywood mogul of offenses ranging from sexual harassment to rape since the New York Times and New Yorker published extensive investigative stories last month. TWC quickly moved to suspend and terminate Harvey Weinstein, but the company he and brother Bob founded, which is behind films like “The King’s Speech” and “Django Unchained” and TV hits like “Project Runway” has been effectively paralyzed.

TWC was already burdened by hundreds of millions in debt before the Harvey Weinstein scandal erupted, and a potential cash lifeline from Colony Capital failed to materialize after founder Tom Barrack, who has dabbled in Hollywood before, had second thoughts. As the company continues to twist in the wind with looming civil liability as more accusers come forward — and with one potential buyer falling off the map and its lenders still wanting to get paid something back — a bankruptcy seems more and more possible. TWC’s hiring of FTI lays the groundwork for such a filing.

FTI is an international business advisory firm with a deep specialty in corporate finance and restructuring. While some industry insiders have speculated that a TWC bankruptcy could be a Chapter 7 liquidation, the hiring of FTI indicates the company is thinking about a Chapter 11 reorganization.

“There’s going to be a transaction here,” Lloyd Greif, the president and CEO of investment bank Greif & Co., told TheWrap last month. “It’s going to be through a bankruptcy. The only way you get this thing done is through a bankruptcy to cleanse the asset.”

A representative for TWC’s board did not immediately respond to a request for comment.