Interpath Advisory claims labour costs and writers’ strike exacerbated existing financial difficulties 

Technicolor

Technicolor’s UK business has appointed Nick Holloway and David Pike of Interpath Advisory as joint administrators. 

The “majority” of the VFX giant’s roughly 440 employees in the UK have been made redundant, with the administrator supporting them with claims to the Redundancy Payments Service. Technicolor operated through The Mill, MPC, Mikros Animation and Technicolor Games brands in the UK, having sold its post-production and VFX units to Streamland Media in 2021. 

According to Interpath, the Technicolor Group had been experiencing financial difficulties “for some time”, which were recently exacerbated by rising labour costs and the long tail of effects from the US writers’ strike. Directors explored the possibility of a sale or refinancing, but found no solvent options available. 

Interpath asks that any parties interested in acquiring assets of the UK business, including specifically The Mill brand, should contact them. 

Holloway said: “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.

“As we seek to affect an orderly wind-down of the business, we will endeavour to support the company’s workforce who have been impacted by redundancy, as well as exploring options to realise the company’s assets.”

Earlier reports revealed that Technicolor is close to collapse globally, with employees in the US and UK receiving emails to that effect. Interpath is only working with the UK arm of the business.