Special effects giant Technicolor on the brink
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The Paris-based group has filed for receivership in France and the United Kingdom. It could announce the end of its activities in the United States in the coming hours.
Skip the adTechnicolor 's decline is accelerating. The group specializing in special effects and animation could announce in the coming hours the end of the activities of its companies The Mill, MPC Advertising and Mikros Animation in the United States. The group's American employees received an internal memo to this effect on Friday.
The Paris-based group also notified its employees of the opening of receivership proceedings with the Paris Commercial Court for its French companies, including Mikros Image and The Mill France. A similar process was launched this Monday in Great Britain for Technicolor Creative Studios UK Limited.
In a letter to employees, CEO Caroline Parot said Technicolor had suffered from a drop in orders linked to the Hollywood screenwriters' strike. But its difficulties go back further. On the verge of bankruptcy in 2020, it tried to revive itself by splitting into two entities in 2022: Technicolor CS, dedicated to special effects, animation and video games, and Vantiva, which houses its other activities.
Two scenarios are emerging. The first is a takeover by a global buyer. But the group has been struggling for a long time to find a candidate. A piecemeal sale seems more likely. The group has reportedly already received expressions of interest. The future of its more than 10,000 employees worldwide is at stake.
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