Village Roadshow Entertainment Group, the production company behind major franchises like The Matrix, Joker, and Ocean’s Eleven, has filed for bankruptcy protection in the United States, according to court documents in Delaware.
The company attributes its financial struggles to a legal dispute with former partner Warner Bros. (WB) and a failed attempt to produce independent films and television series. In an effort to alleviate some of its financial burdens, Village Roadshow is proposing the sale of its extensive film library for $365 million (£281 million).
Court filings reveal the company’s debts range between $500 million and $1 billion. Village Roadshow and WB had a long history of co-producing successful films, but their relationship soured in early 2022 after The Matrix Resurrections debuted on HBO Max. Village Roadshow claimed WB excluded it from rights to sequels and prequels of their joint projects.
The legal battle has been costly, with Village Roadshow incurring over $18 million in legal fees, most of which remain unpaid, according to chief restructuring officer Keith Maib. He added that the dispute has “irreparably decimated” the companies’ relationship and ultimately harmed Village Roadshow’s long-standing success.
Additionally, the company faced setbacks from a costly venture started in 2018 to independently produce films and TV shows, none of which generated profits. Like many film companies, Village Roadshow also suffered from a decline in demand during the pandemic and the disruptions caused by the Hollywood strike that began in May 2023.
Furthermore, in December, the Writers Guild of America barred its members from working with Village Roadshow due to the company’s alleged failure to pay contributors.