Production company behind ‘Joker,’ 'Matrix’ files for bankruptcy

Village Roadshow Entertainment Group, the film production company known for franchises like The Matrix, Ocean's, and Joker, has reportedly sought bankruptcy protection in the U.S., as detailed in a filing with a Delaware court. The company attributes its financial difficulties to an ongoing legal dispute with its former partner Warner Bros (WB) and a "failed and costly endeavour" in the production of independent films and TV series.

Why did Village Roadshow go bankrupt?

To alleviate some of its financial strain, Village Roadshow is looking to sell its extensive film library for $365 million (£281 million).

Court documents indicate that the company's debts range from $500 million to $1 billion. Village Roadshow and WB collaborated on numerous films over the years, but their relationship deteriorated in early 2022 following the release of The Matrix Resurrections on the HBO Max streaming platform. Village Roadshow claims that WB excluded it from rights pertaining to any sequels and prequels of their previously co-produced films.

“The company historically enjoyed a prolific co-production, co-financing and co-ownership relationship with WB, which included the production, ownership and derivative rights flowing from 89 titles – including the ‘Matrix’ franchise – and comprised the vast majority of the Debtors’ business,” read the documents filed.

"The WB arbitration has caused the company to incur more than $18 million in legal fees, nearly all of which remain unpaid," chief restructuring officer Keith Maib stated in a court filing.

According to Maib, that legal dispute has "irreparably decimated the working relationship" between the two companies, ultimately severing "the most lucrative nexus" for Village Roadshow's historical success.

Moreover, Village Roadshow faced challenges from a financially draining studio venture initiated in 2018. None of the independently produced films or television series from this endeavor turned a profit.

Similar to other film companies in the U.S., Village Roadshow grappled with a decline in demand stemming from the pandemic and disruptions caused by Hollywood actors’ and writers’ strike action that began in May 2023. In December, the Writers Guild of America prohibited its members from working with Village Roadshow due to concerns over the company's alleged failure to compensate its contributors.