Village Roadshow Entertainment Group, the film production company known for iconic franchises like The Matrix, Joker, and Ocean's, has filed for bankruptcy protection in the U.S., according to documents submitted to a Delaware court.

The firm attributes its financial difficulties to a legal dispute with former partner Warner Bros. (WB) and a "failed and costly venture" into independent film and television production. To address some of its financial challenges, Village Roadshow is proposing to sell its extensive film library for $365 million (£281 million).

Court documents reveal that the company's debts range between $500 million and $1 billion. Village Roadshow and WB collaborated on numerous films over the years, but their relationship deteriorated in early 2022 following the release of The Matrix Resurrections on HBO Max. Village Roadshow claims WB excluded it from rights to sequels and prequels of their joint projects.

Chief Restructuring Officer Keith Maib stated in a court filing that the ongoing arbitration with WB has led to over $18 million in legal fees, most of which remain unpaid. He noted that this legal conflict has "irreparably decimated the working relationship" between the two companies, effectively ending "the most lucrative nexus" of Village Roadshow's historical success.

Additionally, the company faced setbacks from a costly studio initiative launched in 2018, where none of the independently produced films or TV series turned a profit. Like many U.S. film companies, Village Roadshow also struggled with decreased demand during the pandemic and disruptions caused by the Hollywood actors' and writers' strike that began in May 2023.

In December, the Writers Guild of America prohibited its members from collaborating with Village Roadshow, citing the company's alleged failure to compensate its contributors.