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Supply Chains

 

Dark clouds are gathering over the animation and VFX sector as whispers of uncertainty circulate. The esteemed VFX studio MPC may be on the brink of closure, as reported by Variety and other reliable industry sources. The parent company, Technicolor Creative Studios, issued a WARN notice to its U.S. employees last Friday, indicating the possibility of a significant shutdown or mass layoffs.

 

Sources reveal that “meetings are currently underway” with staff, and while they will receive severance pay, this may be a strategy to maintain calm during this turbulent time. Additionally, reports suggest that Technicolor Creative Studios UK Limited is set to enter administration today, while its French divisions are moving towards receivership. Unfortunately, attempts to reach out to Technicolor for comment have gone unanswered.

 

The WARN notice outlines the dire situation: “Technicolor has been facing severe financial challenges. Despite exhaustive efforts — including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities — we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but to acknowledge that the Company may be forced to foreclose.”

 

The notice further states, “If no viable solution is found, we may be required to cease our U.S. operations as early as Monday, February 24, 2025.”

 

Technicolor, which also owns the commercial VFX powerhouse The Mill, Mikros Animation, and Technicolor Games, has been actively engaging in discussions over the weekend to explore potential acquisitions of all or part of its companies.