VFX Giant MPC and Parent Company Technicolor May Shut Down Amid ‘Severe Financial Challenges’

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It’s possible that by as soon as Monday, visual effects artists may face troubling news, as MPC – the studio behind recent Disney films such as “Mufasa: The Lion King,” “The Jungle Book,” and another “Lion King” release – could be considering closure, based on reports from several reliable sources.

On a Friday, Technicolor initiated notifications to both customers and employees. In compliance with legal regulations for larger corporations planning shutdowns and large-scale job cuts, they sent out WARN notices to their U.S. staff members. This move could potentially lead to the complete closure of MPC and Technicolor’s operations, which in turn would impact a significant number of visual effects workers.

As a devoted cinephile following the industry closely, I’ve been left disheartened by the latest news surrounding Technicolor. The company, which has played an integral role in shaping the visual landscape of countless films over the years, is currently grappling with significant financial hardships.

After tireless attempts to revive the situation—restructuring plans, negotiations with potential investors, and even exploring acquisition possibilities—it appears that a sustainable solution remains elusive. Regrettably, this predicament leaves us with no other choice but to contemplate the possibility of Technicolor being forced into liquidation.

If a viable resolution is not found soon, we may be compelled to halt our U.S. operations as early as February 24, 2025. This looming uncertainty casts a shadow over the future of filmmaking and the rich legacy that Technicolor has built over the decades.

Based in Paris, Technicolor (a company that encompasses MPC, commercial VFX firm The Mill, Mikros Animation, and Technicolor Games) is actively engaged in talks over the weekend with potential buyers, hoping to finalize acquisitions of the entire company or specific brands, or alternatively, ensure their continued operation. According to anonymous sources, there’s a sense of urgency among interested parties as they scramble to negotiate deals. One such source told EbMaster, “Everyone is racing to see if a deal can be made.

Technicolor and MPC have been contacted by EbMaster for comment.

Forthcoming tasks at MPC encompass Disney’s “Snow White” and “Lilo and Stitch,” along with Paramount’s “Mission Impossible – The Final Reckoning.” Mikros is also involved in the upcoming “Teenage Mutant Ninja Turtles 2” from Paramount and Nickelodeon. In case of company closure, it remains uncertain if the ongoing projects can be finished by these facilities or if they’ll be transferred to different visual effects providers instead.

MPC functions in various countries such as the U.S., UK, Canada, and India, with a large workforce of numerous artists. Established in 1970 in London’s Soho district as The Moving Picture Company, it ventured into feature films during the production of the “Harry Potter” series. Apart from “Mufasa”, some of its recent projects include “Kraven the Hunter”, “The Young Woman and the Sea”, and “Emilia Perez.

Over the past few years, Technicolor – a well-known, century-old film technology company – has undergone multiple reorganizations and leadership shifts. This was followed by a bankruptcy filing under Chapter 15, which is related to foreign debtors, in the year 2020.

In 2021, Streamland Media acquired Technicolor Post for $36.5 million, combining their operations with those of Streamland’s entities like Picture Shop. A year later, in 2022, Technicolor rebranded MPC and its current brands as Technicolor Creative Services. Meanwhile, the company’s home and supply chain services were independently rebranded under a new name, Vantiva.

(Pictured: “Mufasa: The Lion King”)

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2025-02-23 19:46