Sometimes the reversal of fortune that can happen in the film industry is absolutely staggering to behold. A prime example is what happened to Orion Pictures. In the late 80s and early 90s, they churned out films like “Crimes and Misdemeanors,” “Dances with Wolves,” and “The Silence of the Lambs” amongst other Oscar winners and nominees.
It all went belly up in 1991 when they declared Chapter 11 bankruptcy. Even though the circumstances are different, we now see a similar fate unfolding with Village Roadshow.
Village Roadshow Pictures has been around since 1989, and has produced a number of hugely successful and influential films. In 1999 they released “Analyze This,” and “The Matrix” in conjunction with Warner Bros. Pictures. Both of them were sizeable box-office hits, with “The Matrix” franchise continuing to score success and pop-culture status for years to come. It would also be one of main things contributing to the bankruptcy of the studio.
Back in 2021, we were still deeply in the COVID-19 pandemic. Warner Bros. was trying mitigate losses by releasing new films on streaming, and some in tandem on the same day they hit theaters. This was done with “The Matrix Resurrections,” and Village Roadshow was unhappy about that decision. They sued Warner Bros. for breach of contract, which reportedly cost Village Roadshow $18 million in legal fees.
Worse yet, it also put a massive strain on the relationship between the two companies. Considering they worked with WB on films like “Joker,” “Ready Player One,” and “Mad Max: Fury Road,” this wasn’t a partner they could really afford to lose.
With this potential future revenue stream being damaged, the company is now listing themselves as having assets between $100 – $500 million, and liabilities between $500 million to $1 billion.
As for projects that are still in the works, there’s still a likelihood they can go on unaffected. Village Roadshow claims they have a potential buyer for the aforementioned assets with a current bid of $365 million. It’s a good time to remember that chapter 11 bankruptcy is for a restructuring of a company to help get out of debt as opposed to a complete shuddering of a business.
