Interpath selected for Technicolor administration
Technicolor Creative Studios UK has officially appointed administrators, with the company having collapsed amid sustained financial difficulties. More than 400 staff have been made redundant since the appointment of Interpath professionals to oversee the administration.
With a heritage dating back more than 100 years, Technicolor Creative Studios is part of the international Technicolor Group. The famous visual effects, animation and creative design studio provides services to the global entertainment, media and advertising industries under its business units The Mill, MPC, Mikros Animation and Technicolor Games.
However, the group had been facing financial challenges for some time – blaming rising labour costs, and the impact of the 2023 writers’ strike which delayed projects for its recent decline. In response, the directors sought to explore their funding options, including exploring options for a sale and refinancing, but with no solvent options available, they took the difficult decision to file for the appointment of administrators.
Immediately following their appointment, the majority of the company’s activities have ceased. As a result, the majority of the Company’s circa 440 employees in the UK have been made redundant – while the joint administrators will be providing support to those impacted, including supporting them with claims to the Redundancy Payments Service.
Nick Holloway, a joint administrator from Interpath alongside David Pike, commented, “The Technicolor Group has a long and proud heritage, dating back more than a century, and whose credits include working on famous films including Disney’s Pinnochio in the 1940s, all the way through to more recently, Ridley Scott’s Prometheus. Unfortunately, the economic headwinds which are affecting companies right across the creative industries have proved too challenging to overcome, which has led to Technicolor’s UK business being placed into administration today.”
Looking ahead, the Interpath professionals will seek an orderly wind-down of the business. This will include exploring options to obtain value from the company’s assets for stakeholders.
The appointment of the joint administrators relates only to the UK business. In France, meanwhile, the headquarters of Technicolor Group, Variety has reported that the company has filed for a ‘recovery procedure’ before the French Court of Justice in order to explore possible solutions.
