Historic Visual Effects Studio Technicolor Collapses in UK

Technicolor, the visual effects (VFX) company behind films from Disney's 1940 classic Pinocchio to the 2024 blockbuster Mufasa: The Lion King, has entered administration in the UK.

Toymaker paints puppet's face; puppet wears red shorts, blue bow. Cat watches. Cozy wooden workshop, warm colors, whimsical mood. — Credit: GETTY IMAGES

The company owned several major VFX studios, including MPC, Mikros Animation, and The Mill, with operations in the US, UK, Canada, and India. Directors had attempted to sell the business but were unable to find a buyer.

Administrators confirmed that "the majority" of the more than 440 UK employees have been made redundant. The administration process affects only the UK arm of the business.

Nick Holloway, joint administrator, cited economic challenges across the creative industries as the reason for the collapse.

Technicolor was founded in 1915 and worked on its first film in 1917. It collaborated with major studios, including Disney, in its early years. The company later acquired leading VFX studios such as The Mill, which won an Oscar in 2001 for its work on "Gladiator", and MPC, which worked on Disney's live-action remakes of "The Lion King" and "The Jungle Book".

Recent projects include "Kraven the Hunter", "Young Woman and the Sea", and "Emilia Perez". Mikros Animation contributed to two "Teenage Mutant Ninja Turtles" films and the "Paw Patrol" series.

VFX studios play a crucial role in modern film production, creating digital environments, characters, and effects for both animated and live-action films. Many employees work on fixed-term contracts, meaning the full impact on jobs may extend beyond the reported redundancies.

According to animation news publisher Cartoon Brew, an email from Technicolor CEO Caroline Parot cited "external headwinds" and post-pandemic recovery challenges. She also pointed to the US writers' strike, which slowed demand for VFX work and put "severe" pressure on cash flow.

A self-described 13-year veteran of The Mill reacted to the news on Reddit, writing, "Render in peace," referencing the computational process of rendering final film-quality images.

Technicolor's UK arm has entered administration, affecting over 440 employees.
The company worked on films from *Pinocchio* (1940) to *Mufasa: The Lion King* (2024).
Major VFX studios under Technicolor included MPC, Mikros Animation, and The Mill.

Source: BBC