A former Obama administration official, Maria Contreras-Sweet has reached a deal to buy assets from Harvey Weinstein’s former company after his downfall over sexual harassment allegations.  Conteras-Sweet was the former head of the Small Business Administration in Obama’s government. She leads an investment group which includes US billionaire Ron Burkle.

The assets will be used to launch a new film company. The news comes just days after the production house announced that it would file for bankruptcy. The deal is reportedly at $500 million.

“Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company,” Contreras-Sweet said in a statement.

The Weinstein company also confirmed the statement. “We are pleased to announce that we have entered into an agreement to sell the assets of The Weinstein Company to an investor group led by Maria Contreras-Sweet and Ron Burkle,” it said.

New company will be led by women:

Contreras- Sweet wants to build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims’ compensation fund.

She said that new company will represent “the best practices in corporate governance and transparency”.

The transaction includes an $80m compensation fund for victims of Harvey Weinstein, who resigned from the TWC board last year. I have had a long-standing commitment to fostering women ownership in business,” she said. “This potential deal is an important step to that end,” she said.

The deal will take 40 days to complete. Two years ago Weinstein valued the company at up to $800 million.

Weinstein was accused of sexual harassment and abuse of women in the industry. Over a dozen women opened up about their instances of unsolicited sexual advances that Weinstein asked of them. And three women have accused the powerful film executive of rape. Even men from Hollywood haven’t held back against Weinstein’s behaviours as several surfaced in the public explaining his sexual misconduct.

Picture credit: NY Post

Also Read: Harvey Weinstein fired from Motion Pictures Academy

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