Village Roadshow Entertainment Group, the film production company behind franchises such as The Matrix, Ocean’s and the Joker, has submitted a bankruptcy file in the United States, according to a file with a Delaware court.
The company blamed its financial problems on a legal battle with its former partner Warner Bros (WB) and a “stranded and costly company” in the production of independent films and television series.
In order to mitigate some of its financial problems, Village Roadshow offers to sell its large film library for $ 365 million (281 million pounds sterling).
The company’s debts are estimated between $ 500 million and $ 1 billion, according to court documents.
Village Roadshow and WB have produced and co -owned dozens of films over the years, but their relationship has increased at the beginning of 2022 after the release of the latest matrix film – The Matrix Resurrections – on the HBO Max streaming platform.
Village Roadshow allegedly alleged that WB had prevented it from its rights on all the suites and prequel to the films on which the two companies had previously worked together.
“WB arbitration has led the company to incur more than $ 18 million in legal fees, which remain unpaid,” said Director of Restructuring Keith Maib in a judicial file.
This legal battle, according to Mr. Maib, “irreparably decimated the employment relationship” between the two companies, ultimately putting “the most lucrative link” for the historical success of Village Roadshow.
The other issue met by Village Roadshow was an expensive studio company launched in 2018. None of the films or television series produces independently as part of this company has given profits.
Like other film societies in the United States, Village Roadshow also had difficulties at the request of the pandemic and the disruption of the strike action by Hollywood actors and writers, which began in May 2023.
In December, the Writers Guild of America prohibited its members from working with Village Roadshow on the alleged failure of the company to pay its contributors.
