The saga of Village Roadshow continued last week, with the legendary Hollywood production company filing for Chapter 11 Bankruptcy protection. Over the past 25 years, Village Roadshow has worked as a financing partner to Warner Bros. on some of the most successful movies over that time, including THE MATRIX, the OCEANS film series and JOKER.
However, the financier has been entangled in a publicized dispute with its longstanding studio partner, stemming from WB’s decision to release their jointly-developed 2021 movie THE MATRIX: RESURRECTION to theatres and streaming on the same day rather than following the traditional exclusive debut in theatres.
This prompted Village Roadshow to file suit against Warner Bros., claiming that the simultaneous release to theatres and streaming limited the movie’s potential to earn box office, and with it, the return on their investment that Village Roadshow had been expecting.
The Village Roadshow vs. Warner Bros. litigation has not yet been settled, with an arbitration process currently taking place. In interviews with Puck and Variety, Vine Alternative (the private equity owner of Village Roadshow) CEO Jim Moore described this week’s bankruptcy filing as entirely the result of the company’s difficult financial status.
However, some are speculating that it is an attempt to get out from underneath debts the organization owes to other production companies, the Writers Guild of America, and even Warner Bros., if the arbitration process ends in a ruling that favors the studio. Village Roadshow’s bankruptcy may also result in the forced sale of its rights to these iconic franchises.