Technicolor Creative Studios UK Limited has announced its intention to file for administration today, February 24, according to an official company letter that has been verified by users on Reddit. In the U.K., administration is a process similar to bankruptcy in the U.S., where an external administrator is appointed to manage the company’s affairs, settle debts, and determine its future. Technicolor has appointed administrators from Interpath Advisory to oversee the process and liaise with all UK employees.

In a letter sent on Sunday, Technicolor informed employees:

“Once the Administrators are appointed, they will send an email with dial-in details for a call tomorrow afternoon where they will explain the impact of the Administration on employees. Whilst you are awaiting this call tomorrow and the details for the next steps, we would ask that you please refrain from coming to the office which will be closed for the day.”

Technicolor operates a network of studios, including MPC, Mikros Animation, The Mill, and Technicolor Games, which provide visual effects and animation services for major Hollywood studios. Among Mikros Animation’s upcoming projects are Paramount’s Teenage Mutant Ninja Turtles: Mutant Mayhem 2 and Netflix’s Plankton: The Movie. MPC is currently involved in Disney’s live-action remakes of Lilo & Stitch and Snow White, as well as Paramount’s Mission Impossible – The Final Reckoning.

Details on the situation remain scarce, but an individual identified as an insider told Variety, “People are rushing to see if they can do a deal.” A deal, however, in our experience, is rather unlikely to materialize.

Meanwhile, in the U.S., Technicolor issued a WARN Act notice last Friday, notifying employees of the impending shutdown of its U.S. operations due to “severe financial challenges.” The letter, widely shared online and corroborated on Reddit, states:

“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.”

Adding to the turmoil, Technicolor CEO Caroline Parot addressed employees worldwide in a letter sent over the weekend, acknowledging the gravity of the situation:

“Dear Team,

As we have communicated over the past months, the Group has been experiencing difficulties linked to a variety of factors and has not been spared from external headwinds: the difficult operational situation resulting from post-COVID recovery, a costly and complex separation from the previous group, followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures.

Today, the company must face reality. Due to the inability to find new investors for the full Group, despite extensive efforts, Technicolor Group has filed for Court ‘recovery procedure’ before the French Court of Justice to give a chance to enable to find solutions.

In each country, the appropriate framework for orderly protection and way forward is currently being put in place to allow, when possible, to remain in business continuity.

This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams will be thoroughly explored to offer a chance to each of its activities to be pursued with new investors.

Technicolor is more than just a company, it is a community of talented, passionate, and creative individuals who have brought some of the most iconic visual experiences to life. The work we create together demonstrates our dedication and artistry and defines Technicolor.

As we move forward, our priority is to support you through this transition. Given the complexities of labor laws and regulations across the different countries in which we operate, this process will be conducted on a country-by-country basis, ensuring compliance with local frameworks and providing the necessary support for each of you.

We recognize that this is an incredibly difficult moment, and we are here to support you in any way we can.

In each of your countries, you will receive a dedicated email in relation to your situation in due time.

With deepest appreciation and respect,

Caroline Parot”

As uncertainty looms, questions remain about whether MPC, Mikros, and the other studios can complete their ongoing projects. If the company proceeds with closures, productions such as Snow White, Lilo & Stitch, Mission Impossible – The Final Reckoning, and Teenage Mutant Ninja Turtles 2 may need to be reassigned to other vendors.

MPC, which employs thousands across the U.S., U.K., Canada, and India, was originally founded as The Moving Picture Company in London’s Soho district in 1970. The studio became a major force in feature film VFX during the Harry Potter era. Recent credits include Mufasa, Kraven the Hunter, Young Woman and the Sea, and Emilia Perez.

Technicolor, a century-old brand in film technology, has undergone multiple restructurings in recent years. It filed for Chapter 15 bankruptcy protection in 2020 and sold Technicolor Post to Streamland Media for $36.5 million in 2021. In 2022, the company rebranded its VFX operations under Technicolor Creative Studios while separating its connected home and supply chain services under the new brand, Vantiva.

Now, with its financial troubles deepening, the future of Technicolor Creative Studios—and the many artists and professionals it employs—remains uncertain.

“Technicolor” refers to the larger company encompassing various divisions, while “Technicolor Creative Services” specifically refers to the division focused on creative production services like visual effects, animation, and advertising, which was later spun off as an independent company called “Technicolor Creative Studios”. Just the creative services part of Technicolor is shutting down, but that’s plenty bad enough, and signals the precarious condition of the entire visual effects industry. It’s subsidiary studio, MPC, has an absolutely massive footprint in the VFX industry, and is one of the largest, most significant animation and effects studios there is.