Technicolor, a visual effects (VFX) group with a history stretching back to 1915, has collapsed into administration in the UK, leading to the redundancy of most of its approximately 440 staff members. The directors of the UK division explored options for a sale or refinancing but found no viable solutions. Nick Holloway, joint administrator, noted the economic challenges facing the creative industries as insurmountable for Technicolor’s UK business. Despite its long history and work on iconic films such as Disney’s Pinocchio and Ridley Scott’s Prometheus, the company was unable to overcome these challenges. The administrators are focused on supporting the affected workforce and exploring options to realize the company’s assets. The appointment of administrators applies only to the UK arm of the business.

Technicolor Creative Studios UK Limited officially appointed Nick Holloway and David Pike from Interpath as joint administrators. This decision follows reports of the company’s impending collapse in the UK, United States, France, India, and Canada. The news has reverberated throughout the visual effects industry. Interpath stated that most of Technicolor’s UK operations have ceased, resulting in the redundancy of the majority of its UK employees. The administrators are prioritizing support for those affected, assisting them with claims to the Redundancy Payments Service. Holloway commented on Technicolor Group’s extensive history and contributions to famous films but acknowledged that economic pressures within the creative industries led to the UK business’s administration. The company has filed for a ‘recovery procedure’ before the French Court of Justice to explore possible solutions.

Technicolor, headquartered in Paris, sent emails to its US employees, indicating that the company might be forced to cease US operations as early as February 24, 2025, due to the inability to secure a viable path forward despite restructuring, investor discussions, and exploring acquisition opportunities. A separate email to UK employees announced the appointment of Interpath Advisory as administrators. The company’s closure could potentially impact over 10,000 VFX and animation workers globally. Technicolor had been in discussions with media and investment groups regarding a potential sale of the privately owned business. In the past, Technicolor filed for Chapter 15 in the United States during the pandemic to protect its US-located assets from enforcement proceedings by creditors. In May 2021, Streamland Media acquired the company’s post-production unit, with the VFX, motion graphics, and animation business operating under Technicolor Creative Studios, which later became a publicly independent company. The company is currently owned by a group of its former lenders and investment funds including Farallon Capital, Barings and Pimco.

Technicolor’s UK operations were conducted through The Mill, MPC, Mikros Animation, and Technicolor Games brands. Interpath stated that the Technicolor Group had been facing financial difficulties for some time, which were worsened by rising labor costs and the long-term effects of the 2023 writers’ strike that caused project delays. The directors explored funding options, including a sale and refinancing, but ultimately concluded that no solvent options were available. Interpath is seeking parties interested in acquiring assets of the UK business, specifically The Mill brand. The 2023 WGA and SAG-AFTRA strikes, which halted production for 191 days, significantly impacted Technicolor’s financial stability. Even after the strikes, post-production vendors experienced delays as film and TV projects required more time to resume shooting. Recent films that Technicolor contributed to include “Kraven the Hunter,” “Emilia Perez,” and the upcoming “Mission: Impossible — The Final Reckoning”.