Village Roadshow’s bankruptcy reflects wider industry challenges, including the impact of the pandemic and labor strikes.
**Village Roadshow Entertainment Group Declares Bankruptcy Amid Financial Woes**
**Village Roadshow Entertainment Group Declares Bankruptcy Amid Financial Woes**
A major player in Hollywood cites battle with Warner Bros and failed ventures as primary reasons.
Village Roadshow Entertainment Group, the production company known for hit franchises like The Matrix and Ocean's, has filed for bankruptcy protection in a Delaware court. The firm pointed to a significant legal dispute with Warner Bros and a detrimental investment in independent film production as primary factors leading to its financial collapse.
The company is reported to have debts ranging from $500 million to $1 billion. To alleviate some of its financial strain, Village Roadshow is looking to sell its film library for an estimated $365 million (£281 million). The firm's troubled relationship with Warner Bros began to deteriorate after the release of The Matrix Resurrections, which was distributed on HBO Max. Village Roadshow claimed that Warner Bros excluded it from profits regarding any future sequels or prequels involving their collaborative films.
According to chief restructuring officer Keith Maib, the ongoing arbitration with Warner Bros has resulted in over $18 million in legal fees, nearly all of which are still owed. Maib noted that this conflict has "irreparably decimated" the working relationship between the two companies, effectively dismantling a previously lucrative partnership.
Village Roadshow's challenges were compounded by a studio endeavor launched in 2018 aimed at producing independent films and television series, which has since failed to yield any profitable output. Additionally, like many companies in the film industry, Village Roadshow faced declining consumer demand linked to the pandemic and disruptions caused by strikes from Hollywood actors and writers. In December, the Writers Guild of America imposed a ban on its members from working with Village Roadshow over allegations of unpaid contributions.
The company is reported to have debts ranging from $500 million to $1 billion. To alleviate some of its financial strain, Village Roadshow is looking to sell its film library for an estimated $365 million (£281 million). The firm's troubled relationship with Warner Bros began to deteriorate after the release of The Matrix Resurrections, which was distributed on HBO Max. Village Roadshow claimed that Warner Bros excluded it from profits regarding any future sequels or prequels involving their collaborative films.
According to chief restructuring officer Keith Maib, the ongoing arbitration with Warner Bros has resulted in over $18 million in legal fees, nearly all of which are still owed. Maib noted that this conflict has "irreparably decimated" the working relationship between the two companies, effectively dismantling a previously lucrative partnership.
Village Roadshow's challenges were compounded by a studio endeavor launched in 2018 aimed at producing independent films and television series, which has since failed to yield any profitable output. Additionally, like many companies in the film industry, Village Roadshow faced declining consumer demand linked to the pandemic and disruptions caused by strikes from Hollywood actors and writers. In December, the Writers Guild of America imposed a ban on its members from working with Village Roadshow over allegations of unpaid contributions.
