The image will get bleaker for iconic movie firm Technicolor with updates that Technicolor Inventive Studios UK Restricted is because of file for administration immediately [Monday 24 February] and the corporate’s French divisions will open receivership proceedings.
Paris-based VFX and submit big Technicolor Group owns prolific manufacturers together with The Mill, MPC and Mikros Animation, whose work has spanned lots of of flicks from the Harry Potter movies to Mufasa: The Lion King, Oscar nominee Emilia Perez and Paramount’s upcoming Mission Unattainable – The Ultimate Reckoning.
In a letter despatched to UK workers on Sunday, and subsequently posted to Reddit and verified by a number of VFX retailers, the Group blamed “post-covid restoration, a expensive and sophisticated separation from the earlier group adopted by the writers’ strike resulting in a slowdown in buyer orders inflicting extreme money circulate pressures”.
The letter, which you’ll be able to learn under, mentioned {that a} name would happen on Monday afternoon between directors Interpath Advisory and UK impacted workers. We now have reached out to Technicolor and Interpath for remark.
In the meantime, a letter to French staff over the weekend said: “Technicolor Group has utilized to the Paris Business Court docket to open receivership proceedings in respect of the next French firms: Mikros Picture, The Mill France, Technicolor Group, Technicolor Animation Manufacturing and Technicolor Trademark Administration.
“The aim of the receivership process is to allow an organization to proceed buying and selling, and should outcome within the property and workers of every of the businesses within the process being taken over as a part of a disposal plan introduced by a third-party purchaser. In observe, placement in receivership has no impression on the operations of the businesses involved, which proceed to function and pursue their contracts and industrial relations in the identical manner as earlier than the receivership.”
This comes after the worldwide VFX and post-production big advised U.S. workers on Friday that it could be shutting down the U.S. workplaces of The Mill, MPC Promoting and Mikros Animation as a consequence of “extreme monetary challenges”.
In a letter, the corporate mentioned: “Regardless of exhaustive efforts — together with restructuring initiatives, discussions with potential traders, and exploring acquisition alternatives — now we have been unable to safe a viable path ahead. Sadly, this leaves us with no various however to acknowledge that the corporate could also be pressured to foreclose.”
It’s unclear what number of jobs are being impacted however Technicolor Group employs greater than 10,000 worldwide so the trade is bracing. It’s additionally unclear how present tasks can be impacted. The Group was simply final week celebrating nominations on the VES awards and pointing to its current work on SuperBowl commercials. The corporate additionally has outposts in India and Canada.
Iconic movie model Technicolor has undergone a number of restructurings and administration adjustments lately after submitting for chapter 15 chapter safety in 2020. Caroline Parot was appointed Interim CEO in 2023. Technicolor Submit was bought to Streamland Media for $36.5M in 2021, combining its operations with Streamland’s companies. In 2022, Technicolor relaunched MPC and the opposite present manufacturers as Technicolor Inventive Providers.
Extra as now we have it.
Letter despatched to UK staff
Pricey Crew,
As now we have communicated over the previous months, the Group has been experiencing difficulties linked to quite a lot of components and has not been spared from exterior headwinds: the troublesome operational state of affairs ensuing from post-covid restoration, a expensive and sophisticated separation from the earlier group adopted by the writers’ strike resulting in a slowdown in buyer orders inflicting extreme money circulate pressures.
In every nation, an applicable framework for the orderly safety and manner ahead is presently being put in place to permit, the place potential, enterprise continuity. Please discover under some particulars on the state of affairs associated to United Kingdom:
In the UK, Technicolor Inventive Studios UK Restricted can be submitting for administration on Monday 24 February.
Directors from Interpath Advisory can be appointed to deal with the affairs of the UK entity, TCS UK restricted, and can be accountable for liaising with all UK workers.
As soon as the Directors are appointed, they are going to ship an electronic mail with dial in particulars for a name tomorrow afternoon the place they are going to clarify the impression of the Administration on workers. While you might be awaiting this name tomorrow and the main points for the following steps, we might ask that you just please chorus from coming to the workplace which can be shut for the day.
This resolution was not taken calmly; each potential path to protect our legacy and safe the way forward for our groups is being totally explored within the hopes of permitting TCS UK’s actions to be pursued with potential new traders.
The Technicolor Group
French particular electronic mail (translated)
Pricey workforce,
We’re following up on the communication despatched immediately to all Technicolor Group workers to give you further info. As introduced, in every nation, an applicable framework for an orderly safety and process is presently being put in place to permit, so far as potential, enterprise continuity. Beneath are some particulars of the state of affairs in France:
Technicolor Group has utilized to the Paris Business Court docket to open receivership proceedings in respect of the next French firms: Mikros Picture, The Mill France, Technicolor Group, Technicolor Animation Manufacturing and Technicolor Trademark Administration.
The aim of the receivership process is to allow an organization to proceed buying and selling, and should outcome within the property and workers of every of the businesses within the process being taken over as a part of a disposal plan introduced by a third-party purchaser.
In observe, placement in receivership has no impression on the operations of the businesses involved, which proceed to function and pursue their contracts and industrial relations in the identical manner as earlier than the receivership.
We are going to get again to you on Monday to report on the state of affairs and maintain you knowledgeable of the progress of the process. We plan to carry an info assembly on Monday afternoon.
The Technicolor Group
