Village Roadshow Entertainment Group, the well-known film producer and financier behind The Matrix, Ocean’s Eleven, Joker, and The Lego Movie franchises, has filed for bankruptcy protection in the U.S.
The company submitted a Chapter 11 filing in Delaware on Monday, citing $223.8 million in asset-backed secured notes and $163.1 million in senior secured debt, according to court documents.
This development follows a prolonged and costly legal dispute with longtime partner Warner Bros. over The Matrix Resurrections, the 2021 sequel to the iconic sci-fi series.
Village Roadshow sued Warner Bros. for breach of contract after the studio released the film on Max simultaneously with its theatrical debut.
“The company historically enjoyed a prolific co-production, co-financing and co-ownership relationship with WB, which included the production, ownership and derivative rights flowing from 89 titles – including the Matrix franchise – and comprised the vast majority of the Debtors’ business,” the court filing stated.
The filing further revealed: “The WB arbitration has caused the company to incur more than $18,000,000 in legal fees, nearly all of which remain unpaid, and presents the threat of a potential arbitration award that could flatten the company’s balance sheet, but that is not the full extent of its impact.”
“Even if the WB arbitration is resolved, the company believes that it has irreparably decimated the working relationship between WB and the company, which has been the most lucrative nexus for the company’s historic success in the entertainment industry,” the document continued.
Like many entertainment companies, Village Roadshow has faced significant challenges due to the production slowdown caused by the pandemic, as well as the Hollywood writers’ strike, which delayed multiple projects.
Notably, the bankruptcy filing pertains to the Los Angeles-based Village Roadshow Entertainment Group, which operates separately from the Australia-based Village Roadshow Group. The latter owns less than 3% of the U.S. entity.
“Village Roadshow Group only found out about the Chapter 11 Bankruptcy once it was reported in the media,” the Australian company said in a statement, adding that it had “terminated its licence with VREG allowing VREG to use the Village Roadshow name.”
The statement continued: “Village Roadshow Group is not impacted by VREG’s financial issues. Further, Village Roadshow Group’s nearly 50-year relationship with Warner Bros remains as strong as ever and is not impacted.”
Founded in 1997, Village Roadshow has produced and released over 100 films, including Mad Max: Fury Road, Ready Player One, and Wonka. In 2017, it sold a controlling stake to Falcon Strategic Partners and Vine Media Opportunities.
By 2018, the company shifted toward developing its own film and TV projects without a major studio partner.
However, according to court filings, these efforts led to six films and seven TV series—none of which turned a profit. In December, the Writers Guild of America placed the company on its “strike list” after it failed to pay writers on multiple projects.
In early 2024, Village Roadshow began exploring a sale after leadership determined that its financial crisis was unsustainable. At that time, the company employed 45 people, but has since downsized to 11 as it focuses on finalizing the sale.
Bankruptcy filings indicate that a stalking horse bidder, CP Ventura LLC, has agreed to purchase the company’s library for $365 million. The purchase agreement identifies the buyer’s representatives as Steven Kram and Steven Blume, co-founders of Content Partners LLC, an investment firm specializing in acquiring film and TV libraries.
The dispute between Village Roadshow and Warner Bros. escalated in early 2022, when WB initiated arbitration, citing Village Roadshow’s failure to make a payment exceeding $100 million under their co-financing agreement for The Matrix Resurrections.
One week later, Village Roadshow countersued, arguing that the film’s simultaneous release in theaters and on Max had severely hurt its box office performance. The company claimed it was being forced to make a payment that effectively subsidized Max without receiving anything in return.
Warner Bros. countered by stating that the agreement only required a wide theatrical release—not an exclusive theatrical window—and maintained that the dispute fell under an arbitration clause.
The conflict extended beyond The Matrix, as Village Roadshow also accused Warner Bros. of blocking its rights to co-finance up to 15 additional projects.
In 2022, a judge denied Village Roadshow’s request for an injunction and ordered the case into arbitration, where it remains. A hearing is scheduled for April 25.
