Village Roadshow Entertainment Group, known for its work on iconic franchises like The Matrix, Joker, and Ocean’s Eleven, has filed for bankruptcy protection in the US. The company has cited financial difficulties stemming from a legal dispute with its former partner, Warner Bros (WB), and a failed venture into producing independent films and TV series.
Village Roadshow’s debts are estimated to be between $500 million and $1 billion. As part of its efforts to address its financial challenges, the company is looking to sell its extensive film library for $365 million (£281 million).
The company’s problems with Warner Bros began in early 2022 following the release of The Matrix Resurrections on the streaming service HBO Max, which Village Roadshow claims led to it being shut out of any rights to sequels or prequels of their previous collaborative films. The legal battle with WB has resulted in over $18 million in unpaid legal fees, severely damaging the partnership.
In addition to the dispute with WB, Village Roadshow launched a costly studio business in 2018, producing independent films and TV series. Unfortunately, these productions failed to generate profits, further contributing to the company’s financial woes.
Like many film companies, Village Roadshow also faced challenges due to the pandemic, which led to a slump in demand, and the disruptions caused by the Hollywood actors’ and writers’ strike that began in May 2023. In December 2023, the Writers Guild of America took action against the company, banning its members from working with Village Roadshow over alleged non-payment of contributors.
The bankruptcy filing marks a significant turning point for the once-renowned production company, which has been a major player in the entertainment industry for decades.