Technicolor, the visual effects (VFX) group which has worked on films ranging from Disney’s 1940 classic Pinocchio to 2024 blockbuster Mufasa The Lion King, has collapsed into administration in the UK.
The group owned several leading visual effects studios including MPC, Mikros Animation and The Mill, with operations in the US, UK, Canada and India.
Technicolor’s directors had been looking to sell the business, but were not able to find a buyer.
Its administrators said “the majority” of the more than 440 people it employed in the UK have been made redundant. The appointment of administrators relates only to the UK arm of its business.
“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,” the firm’s joint administrator Nick Holloway said.
Technicolor was founded in 1915 and worked on its first film in 1917. In its early days it worked on projects with major studios including Disney.
It subsequently acquired major VFX studios including The Mill, which won an Oscar in 2001 for its work on Gladiator, and MPC, which recently delivered big budget remakes of Disney’s The Lion King and Jungle Book.
Mikros Animation projects include two recent Mutant Ninja Turtles titles and the Paw Patrol series of films.
According to animation news publisher Cartoon Brew, an email sent over the weekend by chief executive Caroline Parot said “external headwinds” had exacerbated problems caused by factors including post-covid recovery.
She also said the US writers’ strike which led to a slow-down in demand for VFX work causing “severe” pressure on cashflow.
Those same issues will add to the anxiety of staff and may fear re-entering what has been a relatively lean jobs market for VFX professionals.
