Hollywood may soon need to bid farewell to a visual effects giant credited with bringing classic films such as “Gone with the Wind” and “The Wizard of Oz” to full color.
Technicolor, the 110-year-old company that pioneered color motion picture processes, told its employees this week that it has been unable to find emergency investments to keep the firm afloat.
“Due to inability to find new investors for the full Group, despite extensive efforts, [Paris-headquartered] Technicolor Group has filed for Court ‘recovery procedure’ before the French Court of Justice to give a chance to enable to find solutions,” Technicolor Group CEO Caroline Parot wrote in a memo.
“This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams will be thoroughly explored to offer a chance to each of its activity to be pursued with new investors,” Parot added.
News of the memo was first reported by the entertainment trade magazine Variety.
Technicolor is renowned for revolutionizing color filmmaking with its groundbreaking Technicolor Process, which introduced rich, vibrant color to cinema.
Established in 1915, the company developed a series of color systems, with Technicolor’s three-strip process, introduced in the 1930s, becoming the most famous.
This method used a prism to split light onto three separate film strips, each recording a different primary color, resulting in stunning, saturated hues.
Technicolor later expanded into visual effects, animation, and post-production, contributing to major films and TV projects worldwide while adapting to digital advancements in entertainment.
Technicolor issued legally required WARN notices to its US-based employees on Friday signaling potential closures and mass layoffs at subsidiary MPC, the studio behind Disney’s live-action adaptations such as “Mufasa: The Lion King” and “The Jungle Book” as well as the “Harry Potter” franchise.
If operations cease entirely, the move could result in thousands of job losses within the visual effects sector.
“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,” read the notice from Friday.
“Unfortunately, this leaves us with no alternative but to acknowledge that the Company may be forced to foreclose.”
The company warned that “if no viable solution is found, we may be required to cease our US operations as early as Monday, February 24, 2025.”
Several factors have contributed to Technicolor’s decline, including economic setbacks stemming from the pandemic, a downturn in Hollywood productions following the writers’ strike and the increasing role of artificial intelligence in visual effects work.
The repercussions of its potential collapse extend beyond the United States, as the company has operations in Europe, Canada and India.
Technicolor Group, which oversees multiple visual effects and post-production brands including MPC, The Mill, Mikros Animation and Technicolor Games, is currently undergoing receivership proceedings in Paris Commercial Court.
Mikros Animation has been involved in the production of “Teenage Mutant Ninja Turtles 2” for Paramount and Nickelodeon. If Technicolor shutters, it remains unclear whether these projects will be completed within its existing studios or transferred to other visual effects vendors.
The Mill, a visual effects company with a 35-year history in London, has separated from its parent company and rebranded as Arc Creative. This transition, first reported by Variety, is expected to preserve many jobs and allow the company to continue operations.
The Mill is known for its high-profile projects, including its work on the Oscar-winning film “Gladiator.”
Frustration among employees is mounting, with some voicing concerns online.
One user who claimed to be a former MPC worker commented on The Verge’s website, stating: “No pay for last few weeks work. No severance pay. The c-suite have disappeared without a trace and left middle managers to try and help and answer the questions of the 4500 laid off.”
Technicolor has undergone several restructurings in recent years.
Following a Chapter 15 bankruptcy filing in 2020, its post-production division was sold to Streamland Media for $36.5 million in 2021.
In 2022, the company rebranded its visual effects operations as Technicolor Creative Services, while its connected home and supply chain services were spun off under a separate entity, Vantiva.
The Post has sought comment from Technicolor.
