In an ominous sign for visual effects artists, Technicolor-owned MPC, the banner behind recent Disney films “Mufasa: The Lion King,” “The Jungle Book” and “The Lion King,” could begin shutting its doors as early as Monday, according to multiple sources.
On Friday, Technicolor began alerting customers and employees, sending U.S. employees a WARN notice as required by law for large companies that anticipate closings and mass layoffs. A total shutdown of MPC and Technicolor’s operations would effect thousands of visual effects workers.
According to the text of the notice, obtained by Variety, “Technicolor has been facing severe financial challenges. 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.” Another portion reads, “If no viable solution is found, we may be required to cease our U.S. operations as early as Monday, February 24, 2025.”
Paris-headquartered Technicolor — which owns MPC, commercial VFX company The Mill, Mikros Animation and Technicolor Games — is involved in multiple conversations this weekend, aiming to secure a deal or deals for acquisition of the full company or individual brands, or otherwise keep the doors open, according to sources. “People are rushing to see if they can do a deal,” one insider requesting anonymity told Variety.
Technicolor and MPC have been contacted by Variety for comment.
Upcoming projects at MPC include Disney’s “Snow White” and “Lilo and Stitch,” as well as Paramount’s “Mission Impossible – The Final Reckoning.” Mikros’ work includes Paramount and Nickelodeon’s upcoming “Teenage Mutant Ninja Turtles 2.” Should the company begin to close, it’s not clear whether the current work could be completed by these facilities or if it will move to another VFX vendor or vendors.
MPC operates in countries including the U.S., UK, Canada and India and employs thousands of artists. It was founded as The Moving Picture Company in the Soho section of London in 1970, and moved into features when the “Harry Potter” movies were made. In addition to “Mufasa,” MPC’s recent work include “Kraven the Hunter,” “Young Woman and the Sea” and “Emilia Perez.”
Technicolor — the iconic century-old film tech brand – has experienced several restructurings and management changes in recent years and following its filing for chapter 15 bankruptcy protection in 2020.
Technicolor Post was sold to Streamland Media for $36.5 million in 2021, merging its operations with Streamland’s businesses, including Picture Shop. In 2022, Technicolor relaunched MPC and the other current brands as Technicolor Creative Services while the company’s connected home and supply chain services were separately brought under a new brand, Vantiva.
(Pictured: “Mufasa: The Lion King”)