Village Roadshow files for Chapter 11 bankruptcy protection

Village Roadshow, a well-known film producer behind hits like "The Matrix" and "Joker," has filed for Chapter 11 bankruptcy in the U.S. This situation has raised questions about the company's future. CEO James Moore, speaking during a business trip in Paris, said they are ready to move forward, but the bankruptcy is complicated by ongoing legal issues with Warner Bros. The company's financial troubles, including over $223 million in debt, were no secret in Hollywood. Village Roadshow recently faced criticism for allegedly not paying its writers during the Writers Guild of America strike. The company has also lost its CEO, Steve Mosko, earlier this year. Despite these challenges, Moore is optimistic that the bankruptcy process will lead to quicker resolutions. The legal battle with Warner Bros. centers on the release strategy of “The Matrix Resurrections,” which debuted on HBO Max and in theaters at the same time. Moore emphasized that bankruptcy cannot be used to avoid debts, suggesting that if Village Roadshow owes money, Warner Bros. will likely receive it. COVID-19 significantly impacted the film industry, and Moore believes it played a role in Village Roadshow's decline. The company went into the pandemic with high hopes but struggled to manage its development slate, which resulted in fewer productions. He acknowledged that maintaining their workforce during this time may have stretched their resources too thin. Looking ahead, Moore is shifting focus to EuropaCorp, a company Vine Alternative Investments took over in 2020. He believes supporting European cinema and Luc Besson's projects will be more beneficial moving forward. As for Village Roadshow, it still has valuable intellectual properties and projects in development, but all activity is currently paused while the bankruptcy resolves. While a stalking horse bid has been made for Village Roadshow’s assets, including its library of films, it remains uncertain what the future holds. Moore stated that he still cares about the company but is preparing for a transition away from Village Roadshow's direct involvement. The arbitration process with Warner Bros. continues, with no clear end in sight, adding to the uncertainty surrounding Village Roadshow’s future.