Village Roadshow Entertainment Group, the film production company behind popular franchises such as The Matrix, Ocean’s, and the Joker, has filed for bankruptcy protection in the US. In a filing with a Delaware court, the company attributed its financial troubles to a legal battle with its former partner Warner Bros (WB) and a failed venture into producing independent films and television series. To address some of its financial difficulties, Village Roadshow proposes to sell its extensive film library for $365m (£281m). The company’s debts are estimated to be between $500m and $1bn.

Village Roadshow and WB had a long history of collaboration, producing and co-owning numerous films over the years. However, their relationship turned sour in early 2022 following the release of the latest Matrix film, The Matrix Resurrections, on the streaming platform HBO Max. Village Roadshow alleged that WB had shut it out of its rights to any sequels and prequels of the films they had previously worked on together. The legal battle has resulted in the company incurring more than $18m in legal fees, nearly all of which remain unpaid. According to Village Roadshow’s chief restructuring officer, Keith Maib, this legal dispute has irreparably damaged the working relationship between the two companies, putting an end to the most lucrative collaboration for Village Roadshow’s success.

In addition to the legal battles, Village Roadshow faced challenges with a costly studio business it launched in 2018. None of the films or television series independently produced as part of that endeavor generated any profits. Furthermore, like other film companies in the US, Village Roadshow struggled with a decline in demand due to the pandemic and disruptions caused by strike action from Hollywood actors and writers. In December, the Writers Guild of America prohibited its members from working with Village Roadshow due to the company’s alleged failure to pay its contributors.

Source: https://www.bbc.com/news/articles/cvgwzp2jpneo