Storied VFX Group Forced to Shut Down After Failing to Find New Investors
By Movieguide® Contributor
VFX company Technicolor Group is starting to shut down operations after failing to find new investors.
Technicolor Group CEO Caroline Parot sent a memo to employees, writing “due to inability to find new investors for the full Group, despite extensive efforts, [Paris-headquartered] Technicolor Group has filed for Court ‘recovery procedure’ before the French Court of Justice to give a chance to enable to find solutions.”
“In each country, the appropriate framework for orderly protection and way forward is currently being put in place to allow, when possible, to remain in business continuity,” she continued.
Technicolor’s credits range from classics like THE WIZARD OF OZ and 1940’s PINOCCHIO to the HARRY POTTER series to 2024’s MUFASA: THE LION KING and EMILIA PEREZ.
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The company blamed “post-covid recovery, a costly and complex separation from the previous group followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures,” for their financial woes.
Variety reported that Technicolor is already beginning to shutter its US offices, alerting customers and “sending U.S. employees a WARN notice as required by law for large companies that anticipate closings and mass layoffs.”
A letter sent to their UK workers, obtained by Deadline, announced that the company would be filing for administration, which means an administrator is appointed with hopes to “rescue a viable business that is insolvent due to cashflow problems,” per the UK Government’s website.
“This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams is being thoroughly explored in the hopes of allowing TCS UK’s activities to be pursued with potential new investors,” the letter continued.
This doesn’t come as a surprise, as Technicolor filed for Chapter 15 bankruptcy protections in 2020. Technicolor Post was sold to Streamland Media for $36.5 million the following year.
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