Village Roadshow Entertainment Group, the production company known for popular series like The Matrix, Joker, and Ocean's, has sought bankruptcy protection in the United States, as per a court filing in Delaware. The company attributes its financial difficulties to a legal dispute with former partner Warner Bros and an unsuccessful venture into producing independent films and TV shows.
To address its financial issues, Village Roadshow plans to sell its extensive film library for $365 million (£281 million). Court documents indicate the company's debts range from $500 million to $1 billion.
Village Roadshow and Warner Bros have collaborated on numerous films, but their partnership deteriorated in early 2022 following the release of The Matrix Resurrections on HBO Max. Village Roadshow claims Warner Bros excluded it from rights to any future sequels or prequels of their joint projects.
Chief Restructuring Officer Keith Maib stated in a court document that the arbitration with Warner Bros has led to over $18 million in legal fees, most of which remain unpaid. Maib noted that this legal conflict has severely damaged the relationship between the two companies, ending what was once a highly profitable collaboration for Village Roadshow.
Additionally, Village Roadshow faced challenges from a costly studio initiative launched in 2018, which failed to yield profits from its independently produced films and TV series. Like many other film companies in the U.S., Village Roadshow also struggled with reduced demand during the pandemic and disruptions caused by the Hollywood actors and writers' strike that began in May 2023.
In December, the Writers Guild of America prohibited its members from working with Village Roadshow, citing the company's alleged failure to compensate its contributors.