Technicolor Begins to Shut Down Operations ‘Due to Inability to Find New Investors’

variety.com:

Carolyn Giardina Following a weekend during which it tried to make 11th hour deals to save the company and its brands, Technicolor Group CEO Caroline Parot sent a memo to employees Monday, writing “due to inability to find new investors for the full Group, despite extensive efforts, [Paris-headquartered] Technicolor Group has filed for Court ‘recovery procedure’ before the French Court of Justice to give a chance to enable to find solutions.” Technicolor encompasses VFX giant MPC (“Mufasa,” “The Lion King”), commercial VFX brand The Mill, Mikros Animation and Technicolor Games.

A total shutdown of MPC and Technicolor’s operations would affect thousands of visual effects workers in countries include the U.S., UK, Canada and India.

The turn in business has raised the alarm and sparked sadness within the VFX community. Parot’s memo explains, “In each country, the appropriate framework for orderly protection and way forward is currently being put in place to allow, when possible, to remain in business continuity.” Technicolor has already started to shut down U.S.

operations. On Friday, it began alerting customers and employees, sending U.S. employees a WARN notice as required by law for large companies that anticipate closings and mass layoffs.