The Technicolor Group has begun shutting down operations in multiple countries in bleak news for visual effects artists.
The Paris-based visual effects, motion graphics, and animation giant operates brands like The Mill, Moving Picture Company (MPC), and Mikros Animation, all of whose work ranges from 1940’s Pinocchio, the Harry Potter films, 2024’s Mufasa: The Lion King, to the Oscar-nominated Emilia Perez.
In a letter that was sent to UK employees on Sunday, the group said it had been “experiencing difficulties” due to “post-Covid recovery, a costly and complex separation from the previous group followed by the writers’ strike”.
A similar letter was sent to US staff on Friday, part of a WARN (Worker Adjustment and Retraining Notification) Act notice, which said that group was shutting down the US offices of The Mill, MPC Advertising, and Mikros Animation, citing “severe financial challenges”.
The letter, first published by Reel 360 News, also stated that operations would close as soon as Monday (24 February).
A letter to French workers was also sent over the weekend, which stated that the group had “applied to the Paris Commercial Court to open receivership proceedings”, according to Deadline.
Indian media has also reported that Technicolor’s Indian employees, around 2,000 in number, have been asked not to report to work until further notice.
On Monday, Nick Holloway and David Pike from the advisory firm Interpath were named as joint administrators in the UK.
According to reports, the directors at the UK division looked at a sale, but were unable to find a buyer, which led to the “difficult decision to file for the appointment of administrators”, Interpath said in a statement.
Administration refers to a legal process where a company unable to pay its debts is placed under an administrator, who will attempt to save the business using various means, like restructuring, selling, or managing its assets.
“Immediately following their appointment, the majority of the Company’s activities have ceased. As a result, and with regret, the majority of the Company’s circa 440 employees in the UK have been made redundant,” the statement added.
“Unfortunately, the economic headwinds which are affecting companies right across the creative industries have proved too challenging to overcome, which has led to Technicolor’s UK business being placed into administration today,” Holloway added.
It is still unclear exactly how many will be impacted and in what ways, but with offices in the US, UK, India, South Korea, and Canada, the Technicolor Group employs over 10,000 worldwide.
It is equally unclear what happens to projects under progress, like Disney’s Snow White and Lilo and Stitch, and Paramount’s Mission Impossible – The Final Reckoning under MPC, as well as Paramount and Nickelodeon’s Teenage Mutant Ninja Turtles 2 under Mikros.
The Independent has reached out to Technicolor for comment.
Founded in 1915, Technicolor worked on its first film, The Gulf Between, in 1917. It has gone through multiple restructurings and management changes since it filed for bankruptcy protection in 2020. Technicolor Post was sold to Streamland Media for $36.5m in 2021, which merged its operations with all of Streamland’s businesses.
