Technicolor Group, the French VFX giant that owns some of Hollywood’s most in-demand post-production houses, appears to be on the brink of collapse — putting thousands of jobs at risk.
Variety reports that Technicolor has begun winding down operations after failing to secure a new round of investment necessary to keep the entire international outfit running. In a message sent to employees on Monday, Technicolor CEO Caroline Parot claimed that COVID-19 era setbacks and the 2023 writers strike were two sources of the “severe cash flow pressures” the company has been struggling to deal with.
Parot also said Technicolor — which operates in the U.S., Canada, Europe, India, and Australia — “must face reality,” and explained that the company has petitioned the Paris Commercial Court to initiate receivership proceedings.
“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,” Parrot said. “This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams will be thoroughly explored to offer a chance to each of its activity to be pursued with new investors.”
Technicolor Group, which owns Moving Picture Company (Dune, Spider-Man: No Way Home), The Mill (Detective Pikachu, Severance), Mikros Animation (Teenage Mutant Ninja Turtles: Mutant Mayhem, Orion and the Dark), and Technicolor Games (Mass Effect: Legendary Edition), is no stranger to financial woes. The company was spun-off from Vantiva SA (formerly known as Technicolor SA) in 2020 after the latter filed for Chapter 15 bankruptcy and underwent a large-scale restructuring. Parot also pointed to Technicolor’s separation from Vantiva as a factor that contributed to its current “difficult operational situation.”
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
