Technicolor Creative Studios is facing significant financial difficulties, leading to the closure of its U.S. offices for The Mill, MPC Advertising, and Mikros Animation. These closures, impacting staff in New York, Los Angeles, and Chicago, are expected to begin as early as Monday. This follows the announcement that the company's U.K. subsidiary, Technicolor Creative Studios UK Limited, will file for administration, while its French operations will enter receivership.
In a letter to U.K. employees, Technicolor Group attributed its financial struggles to post-pandemic recovery challenges, the costs associated with separating from its former parent company, and disruptions stemming from the Hollywood writers’ strike. U.K. employees have been instructed to stay home while administrators from Interpath Advisory assess the situation. A similar letter to U.S. staff detailed unsuccessful attempts at restructuring, securing investment, and exploring acquisition opportunities. The letter included a federally mandated WARN (Worker Adjustment and Retraining Notification) Act notice, stating: “Despite exhaustive efforts — including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities — we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but to acknowledge that the company may be forced to foreclose.”
The impact on the visual effects industry will be substantial, given the significant roles of MPC and The Mill. MPC's notable projects include Disney's “Mufasa: The Lion King,” “The Jungle Book,” and “The Lion King,” along with upcoming films like “Snow White,” “Lilo & Stitch,” and “Mission: Impossible – The Final Reckoning.” Mikros Animation contributed to “Teenage Mutant Ninja Turtles: Mutant Mayhem.” While the exact number of job losses remains unknown, Technicolor Group employs over 10,000 people globally.
The company’s history includes multiple restructurings and management changes since its 2020 Chapter 15 bankruptcy filing. In 2021, it sold its post-production division to Streamland Media, and in 2022, relaunched brands like MPC under Technicolor Creative Services. These recent events represent a significant setback for the VFX and post-production industries, leaving numerous projects and the future of thousands of employees uncertain.