Village Roadshow Entertainment Group (VREG), the famed production company responsible for blockbuster franchises including The Matrix and Ocean's series, has formally filed for bankruptcy protection in the U.S., as disclosed in court documents from Delaware. The company attributes its financial distress to a fallout with long-time partner Warner Bros and an unsuccessful push into independent film and television production.
In its effort to alleviate some financial strain, VREG is looking to sell its extensive film library, with an asking price of approximately $365 million (£281 million). Current estimates suggest the company is grappling with debts ranging between $500 million and $1 billion.
The once-cooperative partnership with Warner Bros soured following the rollout of the latest installment in The Matrix series, The Matrix Resurrections, which was released exclusively on HBO Max. Village Roadshow alleges that Warner Bros improperly excluded them from negotiations related to sequels and prequels of their joint projects. Chief restructuring officer Keith Maib indicated in court filings that this dispute has already accrued over $18 million in unpaid legal fees.
According to Maib's statements, the ongoing legal battle has "irreparably decimated the working relationship" between the two companies, dismantling what was considered "the most lucrative nexus" for Village Roadshow's historical achievements.
Following a costly and unsuccessful studio initiative launched in 2018, the company also faced adverse effects from pandemic-related demand declines and disruptions from the Hollywood writers' and actors' strikes, which began in May 2023. Highlighting its difficulties, the Writers Guild of America imposed a ban on its members collaborating with VREG in December, citing alleged non-payment for work completed.
