Technicolor, the company behind major VFX brands such as MPC, The Mill, Mikros Animation and Technicolor Games, is beginning to close its operations after failing to find new investors despite intensive efforts. CEO Caroline Parot informed employees in a statement that the company had filed a "recovery procedure" request with the French court to find solutions. Technicolor operates in several countries and the closure would affect thousands of VFX workers, including in the US, UK, Canada and India.

The closure of the US branches began on Friday. Part of The Mill USA team is already starting a new company called Arc Creative. The future of ongoing projects, such as Disney's "Lilo and Stitch" remake and Paramount's "Mission: Impossible" project, is still unclear.

Technicolor had already been struggling with financial difficulties since 2020, exacerbated by the COVID-19 pandemic, a complex separation from previous business units and the screenwriters' strike. Technicolor Creative Services, including MPC and the other brands, were relaunched in 2022, while the connected home business was rebranded as Vantiva.

In Caroline Parot's statement, the situation is described as extremely difficult and the company is doing everything it can to make the transition as smooth as possible for its employees, taking into account country-specific regulations.

Variety reports in detail.