Village Roadshow Files for Bankruptcy as Warner Bros. Dispute Drains Finances

The entertainment company cites $18 million in legal fees, unprofitable ventures, and industry disruptions as it enters Chapter 11 proceedings in Delaware.

Village Roadshow Entertainment Group has filed for Chapter 11 bankruptcy, listing assets of $100-$500 million and liabilities of $500 million-$1 billion.
A legal dispute with Warner Bros. over the hybrid release of 'The Matrix Resurrections' has cost the company $18 million in legal fees and severely damaged their once-lucrative partnership.
The company's financial troubles were worsened by a failed $47.5 million expansion into independent film and television production, which yielded no sustainable profits.
External pressures, including the COVID-19 pandemic and the 2023 Hollywood writers' strike, disrupted revenue streams and delayed productions.
Village Roadshow's library assets, generating $50 million annually, are set to be sold with an initial stalking horse bid of $365 million to address its mounting debts.

The Hollywood Reporter