Bron, the Canadian producer and co-financier of studio titles like Joker, House Of Gucci and Licorice Pizza, has filed for protection from its Canadian creditors.
The company has also filed for recognition of the initial creditor protection order – issued by the Supreme Court of British Columbia – in the United States under Chapter 15 of the Bankruptcy Code.
It is attempting to steer through a recovery after a brutal confluence of events that has afflicted many in the industry – Covid, economic challenges, and now the double strike.
The decision came after Bron CEO Aaron L Gilbert said he and his team considered a number of options in recent months.
The company will work with its secured creditors, other stakeholders and Grant Thornton Limited – the court-appointed monitor operating under Canada’s Companies’ Creditors Arrangement Act who will review finances and report to the court on a periodic basis.
Proceedings are expected to be completed by autumn. Until then Bron said there are financial resources in place to support its “modified business operations”.
In a letter to staff, partners, and friends Gilbert said, “Having explored many options for many months, Bron had no choice but to take this step in light of its financial circumstances.
“The last few years have been incredibly difficult for Bron, and things have only gotten more complicated over these past months. Covid and the many other issues affecting the media industry the last few years, most recently the strikes, have made Bron’s ability to continue its existing business impossible.”
Last year Bron said it was shifting away from backing tentpoles and focusing on its ”core business as creative producers”.
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