Company Owning The Mill and MPC Studios to Close Operations
Rewritten Article:
In a hard hit for the advertising and creative production industry, it seems the long-standing parent company of production and visual effects (VFX) studios, The Mill and MPC, Technicolor Group, is throwing in the towel. Multiple sources confirm the company's imminent closure, with U.S. employees receiving a Worker Adjustment and Retraining Notification (WARN) notice on Friday.
Technicolor's notice requires companies with 100 or more employees to provide 60-day advance notices of layoffs or closures. In the memo, published first by Reel 360 News, Technicolor blamed "severe financial challenges" and announced their anticipated cessation of U.S. operations as early as February 25.
Not only is Technicolor grappling with financial woes in the U.S., but their international operations, such as the U.K., are also facing hardships[1][2]. This economic downturn stems from the company's inability to secure new investors, following extensive efforts to secure full Group investment[1][2]. Ultimately, Technicolor filed for a court "recovery procedure" in France to explore potential resolutions for their ailing operations[1][2].
Indeed, Technicolor's financial troubles are part of a larger series of economic complications the company has faced. In February, the company encountered significant financial strain, leading to numerous job losses and restructuring efforts[3]. The company's global operations, which encompass major subsidiaries like MPC, The Mill, Mikros Animation, and Technicolor Games, have been subject to various acquisition deals to help offset some of the job losses and financial impact. For instance, TransPerfect acquired MPC and The Mill's French operations, while Rodeo FX snatched up Mikros Animation[4][5].
The demise of Technicolor was described as "extremely brutal" with far-reaching consequences, due to the intricacies of insolvency procedures across various nations[5]. Despite attempts to salvage parts of the business through acquisitions, the overall situation remains challenging for the visual effects (VFX) and animation community globally.
- The anticipated closure of Technicolor Group, a company known for its production and visual effects studios The Mill and MPC, is projected to occur as early as February 25, following a Worker Adjustment and Retraining Notification (WARN) notice sent to U.S. employees.
- Technicolor's international operations, including those in the U.K., are also experiencing hardships due to severe financial challenges and the inability to secure new investors, a predicament that has led them to file for a court "recovery procedure" in France.
- To offset some of the job losses and financial impact, several acquisition deals have been made, such as TransPerfect acquiring MPC and The Mill's French operations, and Rodeo FX acquiring Mikros Animation.
- The denouement of Technicolor is seen as "extremely brutal" with far-reaching consequences, as it affects not only the visual effects (VFX) and animation community in the U.S., but globally due to the intricacies of insolvency procedures across various nations.
