Technicolor Creative Studios files for UK administration, shutters U.S. offices

Technicolor Creative Studios is shutting down its U.S. offices of The Mill, MPC Advertising and Mikros Animation, citing severe financial challenges that have pushed the company to the brink of collapse.

The closures, expected to take effect as early as Monday, will impact staff in New York, Los Angeles and Chicago.

The move comes amid broader financial turmoil for Paris-based Technicolor Group, which owns The Mill, MPC and Mikros Animation. The company has confirmed that its U.K. subsidiary, Technicolor Creative Studios UK Limited, will file for administration today, while its French operations will enter receivership proceedings.

In a letter to U.K. employees on Sunday, Technicolor Group cited financial struggles linked to post-pandemic recovery, the costly separation from its former parent company and industry-wide disruptions caused by the Hollywood writers’ strike. Employees in the U.K. have been instructed to stay home while administrators from Interpath Advisory determine the next steps.

A similar letter sent to U.S. staff on Friday detailed the company’s attempts to restructure, secure new investment and explore acquisition opportunities, all of which failed to yield a viable solution. The letter, which included a federally mandated WARN (Worker Adjustment and Retraining Notification) Act notice, stated:

“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.”

Technicolor’s financial struggles are expected to have a significant impact on the visual effects industry, where MPC and The Mill have been major players.

MPC is known for its work on Disney’s “Mufasa: The Lion King,” “The Jungle Book” and “The Lion King,” as well as upcoming titles such as “Snow White,” “Lilo & Stitch” and “Mission: Impossible – The Final Reckoning.” Mikros Animation has contributed to films including “Teenage Mutant Ninja Turtles: Mutant Mayhem.”

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The full scope of job losses remains unclear, but Technicolor Group employs more than 10,000 workers worldwide. The company, which has undergone multiple restructurings and management changes since filing for Chapter 15 bankruptcy protection in 2020, sold its post-production division to Streamland Media for $36.5 million in 2021. In 2022, it relaunched MPC and other brands under Technicolor Creative Services.

The latest developments mark a blow to the VFX and post-production industry, leaving ongoing projects and the future of thousands of employees in question.