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The picture gets bleaker for iconic film company Technicolor with updates that Technicolor Creative Studios UK Limited is due to file for administration today [Monday 24 February] and the company’s French divisions will open receivership proceedings.
Paris-based VFX and post giant Technicolor Group owns prolific brands including The Mill, MPC and Mikros Animation, whose work has spanned hundreds of movies from the Harry Potter films to Mufasa: The Lion King, Oscar nominee Emilia Perez and Paramount’s upcoming Mission Impossible – The Final Reckoning.
In a letter sent to UK employees on Sunday, and subsequently posted to Reddit and verified by multiple VFX outlets, the Group blamed “post-covid recovery, a costly and complex separation from the previous group followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures”.
The letter, which you can read below, said that a call would take place on Monday afternoon between administrators Interpath Advisory and UK impacted employees. We have reached out to Technicolor and Interpath for comment.
Meanwhile, a letter to French workers over the weekend stated: “Technicolor Group has applied to the Paris Commercial Court to open receivership proceedings in respect of the following French companies: Mikros Image, The Mill France, Technicolor Group, Technicolor Animation Production and Technicolor Trademark Management.
“The purpose of the receivership procedure is to enable a company to continue trading, and may result in the assets and employees of each of the companies in the procedure being taken over as part of a disposal plan presented by a third-party buyer. In practice, placement in receivership has no impact on the operations of the companies concerned, which continue to operate and pursue their contracts and commercial relations in the same way as before the receivership.”
This comes after the global VFX and post-production giant told U.S. staff on Friday that it would be shutting down the U.S. offices of The Mill, MPC Advertising and Mikros Animation due to “severe financial challenges”.
In a letter, the company said: “Despite exhaustive efforts — including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities — we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but to acknowledge that the company may be forced to foreclose.”
It’s unclear how many jobs are being impacted but Technicolor Group employs more than 10,000 worldwide so the industry is bracing. It’s also unclear how current projects will be impacted. The Group was just last week celebrating nominations at the VES awards and pointing to its recent work on SuperBowl commercials.
Iconic film brand Technicolor has undergone multiple restructurings and management changes in recent years after filing for chapter 15 bankruptcy protection in 2020. Caroline Parot was appointed Interim CEO in 2023. Technicolor Post was sold to Streamland Media for $36.5M in 2021, combining its operations with Streamland’s businesses. In 2022, Technicolor relaunched MPC and the other current brands as Technicolor Creative Services.
More as we have it.
Letter sent to UK workers
Dear Team,
As we have communicated over the past months, the Group has been experiencing difficulties linked to a variety of factors and has not been spared from external headwinds: the difficult operational situation resulting from post-covid recovery, a costly and complex separation from the previous group followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures.
In each country, an appropriate framework for the orderly protection and way forward is currently being put in place to allow, where possible, business continuity. Please find below some details on the situation related to United Kingdom:
In the United Kingdom, Technicolor Creative Studios UK Limited will be filing for administration on Monday 24 February.
Administrators from Interpath Advisory will be appointed to handle the affairs of the UK entity, TCS UK limited, and will be responsible for liaising with all UK employees.
Once the Administrators are appointed, they will send an email with dial in details for a call tomorrow afternoon where they will explain the impact of the Administration on employees. Whilst you are awaiting this call tomorrow and the details for the next steps, we would ask that you please refrain from coming to the office which will be close for the day.
This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams is being thoroughly explored in the hopes of allowing TCS UK’s activities to be pursued with potential new investors.
The Technicolor Group
French specific email (translated)
Dear team,
We are following up on the communication sent today to all Technicolor Group employees to provide you with additional information. As announced, in each country, an appropriate framework for an orderly protection and procedure is currently being put in place to allow, as far as possible, business continuity. Below are some details of the situation in France:
Technicolor Group has applied to the Paris Commercial Court to open receivership proceedings in respect of the following French companies: Mikros Image, The Mill France, Technicolor Group, Technicolor Animation Production and Technicolor Trademark Management.
The purpose of the receivership procedure is to enable a company to continue trading, and may result in the assets and employees of each of the companies in the procedure being taken over as part of a disposal plan presented by a third-party buyer.
In practice, placement in receivership has no impact on the operations of the companies concerned, which continue to operate and pursue their contracts and commercial relations in the same way as before the receivership.
We will get back to you on Monday to report on the situation and keep you informed of the progress of the procedure. We plan to hold an information meeting on Monday afternoon.
The Technicolor Group
