Village Roadshow, the production company known for its involvement in The Matrix films and as a key player in the expansion of multiplexes in India, has declared bankruptcy in the United States following an extended legal dispute with Warner Bros Discovery Inc.

Village Roadshow files for bankruptcy

Village Roadshow Entertainment Group, known for producing franchises such as The Matrix and Ocean's 11, filed for bankruptcy protection in Delaware on Monday, reporting $223.8 million in asset-backed secured notes and $163.1 million in senior secured debt, as indicated by court documents.

The company, which operates in both the United States and Australia, has faced challenges in recovering from the downturn caused by the pandemic and the Hollywood writers' strike in 2023, which postponed film productions. Its financial difficulties have been primarily attributed to an ongoing arbitration with its long-time partner, Warner.

In 2022, Village Roadshow Entertainment initiated arbitration concerning the release of The Matrix Resurrections on the HBO Max streaming service, claiming this decision deprived the company of significant box office revenue. Additionally, the company alleged that Warner had “excluded it from its rights to co-own and co-finance” future instalments of the film series that Village Roadshow originally developed, as stated in the filing.

The potential for a significant arbitration award poses a risk to the company's financial stability, with Village Roadshow Entertainment noting that even if the lawsuit is settled, its crucial partnership with Warner has been “irreparably damaged.”

Village Roadshow and PVR

The company was established in 1997 and has produced and released more than 100 films, including notable titles such as Joker, The Great Gatsby, and The LEGO Movie. Since 2017, it has been under the ownership of Falcon Strategic Partners and Vine Media Opportunities. In January, Village Roadshow Entertainment appointed Keith Maib, a senior managing director at Accordion Partners, to the position of chief restructuring officer.

In the 1990s, Village Roadshow played a pivotal role in the multiplex expansion in India by partnering with the Bijlis to create PVR (originally known as Priya Village Roadshow). However, Village Roadshow withdrew from this partnership in 2003. Over the years, PVR—now known as PVR INOX—has grown to become the largest cinema chain in South Asia.

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