Village Roadshow Entertainment Group, the production company behind blockbuster franchises like The Matrix, Joker, and Ocean’s Eleven, has filed for bankruptcy protection in the U.S., according to court documents submitted in Delaware.
The company cites a costly legal battle with former partner Warner Bros. (WB) and an unsuccessful venture into independent film and television production as key factors in its financial collapse.
In an effort to alleviate some of its financial burden, Village Roadshow is looking to sell its extensive film catalog for $365 million (£281 million). However, court filings estimate the company’s debt to be between $500 million and $1 billion.
Legal Dispute with Warner Bros.
For years, Village Roadshow and WB co-financed and co-owned numerous films, but their partnership deteriorated in early 2022 following the release of The Matrix Resurrections on HBO Max.
Village Roadshow accused WB of shutting it out of future rights to sequels and prequels of their jointly produced films.
According to chief restructuring officer Keith Maib, the WB arbitration has cost the company over $18 million in legal fees, most of which remain unpaid.
"This legal battle has irreparably damaged our working relationship with Warner Bros. and dismantled what was once the most lucrative partnership in Village Roadshow’s history," Maib stated in court.
Failed Studio Venture and Industry Setbacks
In addition to its legal struggles, Village Roadshow suffered financial losses from a failed studio initiative launched in 2018, with none of its independently produced films or TV series generating profit.
Like many film studios, the company was also hit hard by the pandemic-related downturn in cinema demand and Hollywood’s labor strikes, which began in May 2023.
Further compounding its troubles, the Writers Guild of America (WGA) blacklisted Village Roadshow in December, accusing it of failing to compensate contributors.
The bankruptcy filing marks a dramatic downturn for a company once at the forefront of Hollywood’s biggest cinematic successes.