On Saturday, Reel 360 News broke the news of a major blow to the post-production industry as Technicolor Creative Studios, the parent company of The Mill, MPC, Technicolor Games and Mikros Animation,is reportedly on the verge of closure. This development is now expected to impact approximately 10,000 employees across its global offices.
An internal email sent this weekend by CEO Caroline Parot to Technicolor’s global workforce has been circulating on industry forums, shedding light on the challenges the company is facing. Citing “severe cash flow pressures,” the email concedes that “the company must face reality” due to the inability to secure new investors. It outlines efforts to find an “appropriate framework” that would, “when possible, allow for business continuity.”
Here is the entire letter from Parot:
“Dear Team
As we have communicated over the past months, the Group has been experiencing difficulties linked to a variety of factors and has not been spared from external headwinds: the difficult operational situation resulting from post-covid recovery, a costly and complex separation from the previous group followed by the writers’ strike leading to a slowdown in customer orders causing severe cash flow pressures.
Today, the company must face reality. Due to inability to find new investors for the full Group, despite extensive efforts, Technicolor Group has filed for Court “recovery procedure” before the French Court of Justice to give a chance to enable to find solutions.
In each country, the appropriate framework for orderly protection and way forward is currently being put in place to allow, when possible, to remain in business continuity.
This decision was not taken lightly; every possible path to preserve our legacy and secure the future of our teams will be thoroughly explored to offer a chance to each of its activity to be pursued with new investors.
Technicolor is more than just a company, it is a community of talented, passionate, and creative individuals who have brought some of the most iconic visual experiences to life. The work we create together demonstrates our dedication and artistry and defines Technicolor.
As we move forward, our priority is to support you through this transition. Given the complexities of labor laws and regulations across the different countries in which we operate, this process will be conducted on a country-by-country basis, ensuring compliance with local frameworks, and providing the necessary support for each of you.
We recognize that this is an incredibly difficult moment, and we are here to support you in any way we can.
In each of your countries, you will receive a dedicated email in relation to your situation in due time.
With deepest appreciation and respect,”
Caroline Parot
Reports surfaced over as early as Saturday morning on the Fishbowl app and Reddit that employees at The Mill’s U.S. locations were informed of the studio’s impending closure via email on Friday, February 21, 2025. The widely shared email cited “severe financial difficulties” faced by Technicolor in recent months. “Despite exhaustive efforts—including restructuring initiatives, discussions with potential investors, and exploring acquisition opportunities—we have been unable to secure a viable path forward. Unfortunately, this leaves us with no alternative but to acknowledge that the company may be forced to foreclose.”
The message further warned that, “If no viable solution is found, we may be required to cease our U.S. operations as early as Monday, February 24, 2025.”
On Monday, LBB Online confirmed that Technicolor Creative Studios UK Limited is expected to file for administration. A separate email sent to UK-based staff stated, “Administrators from Interpath Advisory will be appointed to handle the affairs of the UK entity, TCS UK Limited, and will be responsible for liaising with all UK employees.”
Technicolor also has a significant presence in India, where over 2,000 employees work across its studios. Reports indicate that workers there have been asked not to report to work until further notice, leaving the future of the Indian operations uncertain.
The company also operates studios in Canada, France, Korea, and China. However, specifics about their status remain unclear.
Legacy of The Mill, MPC, and Mikros
The Mill, founded in London in 1990 by Robin Shenfield and Pat Joseph, quickly established itself as a global leader in visual effects. In 2001, it won an Academy Award for Best Visual Effects for its work on Ridley Scott’s Gladiator and became known for its groundbreaking VFX work in commercials. Technicolor acquired The Mill in September 2015 for $271 million.
MPC (The Moving Picture Company) was founded in 1970 by Mike Luckwell and has produced Academy Award-winning work on films such as 1917, The Jungle Book, and Life of Pi. Technicolor acquired MPC in 2004.
Mikros, the animation division of Technicolor, was founded in 1985 and joined Technicolor’s portfolio in 2015.
In 2022, Technicolor merged the advertising division of MPC into The Mill to form a single global brand, aiming to become “the world’s largest creative visual arts company.” MPC continued its focus on the film industry.
Alumni from The Mill and MPC have since established their own studios—many of which are now considered among the industry’s top creative shops—including Parliament, Blacksmith, and Preymaker in the U.S., Rascal and Black Kite in the UK, and Gabha in Ireland.
Financial Struggles and Industry Shifts
Like much of the entertainment industry, Technicolor was severely impacted by the COVID-19 pandemic and the Hollywood strikes. A Financial Times report from October 2024 suggested that the company remained too reliant on mainstream filmmaking while the most stable revenue streams were shifting toward streaming platforms. At the time, Technicolor was reportedly in talks with potential buyers, but no deals materialized.
With the company now facing potential closure, the future of its remaining studios—and the thousands of employees impacted—remains uncertain. The situation continues to develop as stakeholders and employees await further announcements.
Colin Costello is the West Coast Editor of Reel 360. Contact him at colin@reel360.com or follow him on Twitter at @colinthewriter1
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