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Technicolor to enter administration
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According to reports, the parent company of The Mill, MPC, and Mikros, faces closure, halting all creative operations.
Media and technology company Technicolor is poised to enter administration, suspending key creative operations amid mounting financial pressures.
The development has significant implications for Technicolor’s advertising-focused subsidiaries, including The Mill, MPC, and Mikros - all known for their work on high-profile commercial campaigns and post production services.
A recent Variety report indicates that MPC in the US has already shuttered due to “severe challenges,” pointing to declining revenues and cost overruns.
Meanwhile, a Reddit post on the VFX-focused subreddit r/vfx, published on the 23rd February under the title Technicolor troubles reach further than the US, shared firsthand accounts from unconfirmed employees claiming to be affected.
Leadership’s letter to employees
In a statement attributed to the company from the Reddit post, as well as being quoted on Variety and Deadline, leadership warned of a “potential closure of Technicolor worldwide” due to severe cash flow pressures. The letter, addressed to all employees under the subject line “Dear Team,” cites multiple factors for the crisis:
“As we have communicated over the past months, the Group has been experiencing difficulties linked to a variety of factors and has not been spared from external headwinds: the difficult operational situation resulting from post-covid recovery, a costly and complex separation from the previous group followed by the writers' strike leading to a slowdown in customer orders causing severe cash flow pressures.”
Technicolor informed staff that it had filed for a “recovery procedure” with the French Court of Justice to seek new investors, describing the decision as necessary to “preserve our legacy and secure the future of our teams.”
We will report more once official word from the company has been made public, and wish the best for all workers currently affected.
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