In a significant turn of events for the film industry, Village Roadshow Entertainment Group, producer of iconic films like The Matrix and Joker, has filed for bankruptcy protection in the U.S. The company’s financial woes stem from an ongoing legal dispute with Warner Bros (WB) and a failed venture into independent film production.
In court filings made in Delaware, Village Roadshow attributes its struggles to a deteriorating relationship with WB, particularly following the release of The Matrix Resurrections on HBO Max in early 2022. This fallout left Village Roadshow alleging that WB had shut them out of sequel rights, leading to mounting legal fees exceeding $18 million, most of which remain unpaid. According to the company’s chief restructuring officer, Keith Maib, this legal entanglement has severely damaged their once lucrative partnership with WB.
Moreover, Village Roadshow launched an independent filmmaking endeavor in 2018 that turned out to be unprofitable, further crippling its finances. With debts ranging from $500 million to $1 billion, the company is now looking to sell its impressive film library for $365 million as part of efforts to alleviate its financial strain. Like many in the industry, Village Roadshow has also felt the impact of the COVID-19 pandemic and ongoing strikes by Hollywood actors and writers. The Writers Guild of America has placed further pressure on the company by banning its members from working with Village Roadshow over payment issues.
