Colony Capital, a private equity firm known for snapping up failing Hollywood properties at a bargain price, is withdrawing its investment offer to the embattled Weinstein Company, The New York Times reports. Last week, the firm and the struggling studio, whose name is being scrubbed from movie credits as we type, reached a preliminary agreement for an immediate cash infusion and possible purchase. But now the Times reports that, according to two anonymous sources who were “briefed on the matter,” Colony won’t be coming to the rescue after all. They didn’t elaborate on why the deal fell through, but did note that the firm found more “disorder” at TWC than they expected, and now foresee “bankruptcy as the most likely near-term outcome for the studio.”
The Weinstein Company still has at least one other option—Fortress Investment Group, which is also in the business of buoying underwater companies, is reportedly “working on a potential financing package for the studio valued at roughly $35 million.” That’s enough money to keep the production company in business through January. It’s not clear if that figure takes into account the $5 million lawsuit that’s been brought against the Weinstein Company by one of Harvey Weinstein’s alleged victims.