Hollywood Studio Files Chapter 11 Bankruptcy

TWL_2015_july_blog10Struggling under the weight of approximately $681 million in secured debt, Relativity Media filed for Chapter 11 bankruptcy protection this week. The Hollywood studio rose to prominence by co-financing blockbuster movies like Fast & Furious 6 and 21 Jump Street alongside major studios like Universal Pictures. However, it has struggled in recent years to strike out on its own and produce and distribute solo movie projects. The company’s 2013 thriller Paranoia tanked at the box office as did its 2015 spring film Desert Dancer. As it restructures, the company will lay off 75 of its 350 employees. It will also seek to sell itself by fall, possibly to Anchorage Capital, one of its primary debtholders.

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Image Source: Vancouver Film School