The eleventh-hour deal to save Harvey Weinstein’s TV and film company from going bankrupt has fallen through, after the buyers discovered tens of millions of dollars more in liabilities on the books than expected.

Last week, a consortium of investors led by Maria Contreras-Sweet, a former senior official in Barack Obama’s administration, and US billionaire Ron Burkle, entered the final stage of a $500m (£360m) deal to buy the Weinstein Company.

The deal, which included taking on an expected $225m in debt on the company’s books, has fallen through for a second time in as many weeks.

The investor group, which on 1 March entered a 40-day process to go over TWC’s books with a fine-tooth comb before completing the deal, is understood to have uncovered about $50m-60m more in debt and other liabilities than previously thought.

“All of us have worked in earnest on the transaction to purchase the assets of the Weinstein Company,” said Contreras-Sweet in a statement. “However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction. As a result, we have decided to terminate this transaction.”

Last month, TWC’s board said the company was set to go into bankruptcy after it said the deal offered by Contreras-Sweet was “illusory”. Last week, a new deal was reached, which included doubling a fund for victims of Harvey Weinstein to $80m, which has fallen through.

“We are disappointed by the announcement today that the investor group led by Maria Contreras-Sweet and Ron Burkle has (again) walked away from its bid to buy the assets of the Weinstein Company,” the TWC board said in a statement. “The investors’ excuse that they learned new information about the company’s financial condition is just that – an excuse. The company has been transparent about its dire financial condition to the point of announcing its own likely bankruptcy last week.”

The board said it would continue to work “tirelessly” to see if there were any options to save the business, and its 150 staff, other than bankruptcy.

Contreras-Sweet, who has said her involvement was inspired by the #MeToo movement that emerged in the wake of the Weinstein allegations, intended to rename the company and run it with a board constituted with a majority of female directors.

“I believe that our vision to create a women-led film studio is still the correct course of action,” she said. “To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.”

In the event that TWC does now go into bankruptcy, which will mean buyers will be free of all the company’s debt and liabilities, there is likely to be a lot of interest in its film and TV assets and library.

The Weinsteins have put out 94 films since 2010 with the top five grossing more than $1.5bn internationally, according to Box Office Mojo.

The company has backed films including The King’s Speech, The Artist, Silver Linings Playbook and Quentin Tarantino’s Django Unchained.

Its TV division, which was valued at $1bn three years ago and attracted potential suitors including ITV, makes reality show Project Runway, Netflix’s Marco Polo and the BBC’s War & Peace.

There are six favoured bidders for TWC’s assets. These include Lantern Capital, which has been involved in the Contreras-Sweet/Burkle bid, Qatari broadcaster beIN Media, the owner of the Weinstein-founded Miramax studio, Lionsgate, known for La La Land and The Hunger Games franchise, Vine Investments and Critical Content.