Movie Producer Behind ‘The Matrix’ and ‘Joker’ Files for Bankruptcy

Village Roadshow Entertainment Group, the independent film production company known for franchises such as The Matrix, Joker, and Ocean’s Eleven, has officially filed for bankruptcy in the United States. The filing, submitted in a Delaware court, highlights the company’s financial difficulties stemming from a prolonged legal battle with Warner Bros. (WB) and an ambitious but unsuccessful attempt to expand into independent film and television production.

Financial Woes and the Warner Bros. Dispute

The conflict between Village Roadshow and WB can be traced back to the release of The Matrix Resurrections in 2021. Village Roadshow claims that WB breached their contract by launching the film on HBO Max simultaneously with its theatrical release, a move that allegedly undercut its box office potential. As a result, the company initiated arbitration against WB, seeking to enforce its rights to future sequels and prequels of co-owned properties. This legal battle has cost the company over $18 million in legal fees, most of which remain unpaid.

According to Chief Restructuring Officer Keith Maib, the arbitration has irreparably damaged Village Roadshow’s relationship with WB, ending what was once a highly profitable partnership responsible for nearly 90 film projects. The dispute and mounting legal costs have severely impacted the company’s ability to operate and sustain itself financially.

Debt and Restructuring Plans

In its bankruptcy filing, Village Roadshow disclosed that it carries significant financial liabilities. The company currently holds $223.8 million in asset-backed secured notes and $163.1 million in senior secured debt. Additionally, reports estimate the company’s total debt to be between $500 million and $1 billion.

To mitigate its financial crisis, Village Roadshow has proposed selling its extensive film library, which generates approximately $50 million in annual revenue. The company has secured an initial “stalking horse” bid of $365 million for these assets. Additionally, it has arranged a debtor-in-possession (DIP) financing facility to maintain operations under court supervision.

Failed Expansion and Industry Challenges

One of the primary reasons for Village Roadshow’s financial downfall was an ambitious but ultimately unsuccessful expansion into independent film and television production. The company invested heavily in scripted and unscripted projects, but these productions failed to yield substantial profits. The attempt to establish itself as a standalone studio outside of its long-standing partnership with WB proved to be a costly misstep.

Moreover, Village Roadshow, like many other film companies, faced external pressures such as the decline in theatrical revenue due to the pandemic and the impact of Hollywood industry strikes. In May 2023, the Writers Guild of America initiated a ban against its members from working with Village Roadshow due to alleged non-payment of contractual obligations. These factors further strained the company’s financial position and operational stability.

Leadership Changes and Workforce Reduction

As financial troubles mounted, Village Roadshow underwent significant leadership and structural changes. CEO Steve Mosko, who had led the company since 2018, resigned in January 2025 amid continued losses. Additionally, in an effort to reduce expenses, the company drastically downsized its workforce, cutting its staff to just 11 employees.

A Legacy of Influence in the Film Industry

Despite its current financial turmoil, Village Roadshow has left a lasting impact on the film industry. Since its founding in 1997, the company has been involved in the production and release of over 100 films, including critically acclaimed titles such as Mad Max: Fury Road, Ready Player One, and Wonka. Its co-production and financing model helped bring some of Hollywood’s biggest blockbusters to the screen, cementing its reputation as a key player in the entertainment sector.

While the company’s future remains uncertain, the ongoing bankruptcy process and asset sale may determine whether Village Roadshow can restructure and continue operations in some form or if it will mark the end of an era for the influential production house.