The Weinstein Company is having a bad, bad month — to put it lightly.
On top of everything happening with Harvey Weinstein and the numerous sexual assault claims against him, a new report on TMZ says the company he was once chief executive of is in financial ruin.
According to their source, TWC has been broke for the past 15 months and the financial books are so fraught that it's scaring off buyer, Colony Capital, backed by billionaire investor Tom Barrack, who was considering saving the company.
The finances are such a mess that the source says the 42% equity that Harvey, who stepped down from the company's board this week, and his brother Bob own is worthless. Additionally, movie deals — and other company deals — are being broken ever since the news broke, with a TWC source telling TMZ, "I haven't seen this much anger EVER in this business. Companies are taking this one personally."
Between the broken deals and the messy finances, Colony Capital is rethinking the purchase and is said to believe that even changing the name of the company and it's personnel might not fix things.
One source believes that for the company to have any hope, it isn't just Harvey who needs to be ousted — it's his Bob as well. "One thing is certain. If there's any chance for survival, Bob has to go," the source said.
TMZ previously reported that if the Colony Capital deal goes through, Bob will be moved to run the film division, Dimension.
Colony Capital has had experience with Harvey before, purchasing his former company, Miramax, from Disney in 2010 for $660 million.