US-based Village Roadshow Entertainment files for bankruptcy, “no impact” on Australian group
United States company Village Roadshow Entertainment Group - which no longer has ties to the successful Gold Coast theme park giant of the same name - has collapsed in a $1.57bn debt pile.
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The billion-dollar collapse of United States company Village Roadshow Entertainment Group (VREG), and its nasty stoush with another American film giant, will have no impact on the Australian group of the same name, the company said.
Court records show 34 companies related to Los Angeles-based Village Roadshow Entertainment have filed for bankruptcy, with debts of up to $US1bn, or $1.57bn Australian.
Australia’s Village Roadshow Group had previously owned up to 50 per cent of the US-based film company, but reduced its holding to 2.5 per cent in 2021 and is not liable for any of its debts.
The US group has spent more than $US18 million in legal fees on an ongoing legal battle with Warner Bros. – which also holds crucial trademarks for the Warner Bros. Movie World theme park on the Gold Coast.
WB owns the rights to Looney Tunes characters including Bugs Bunny and Tweety Pie; DC Comics characters like Superman and Batman; and Scooby Doo – all of which feature on rides and attractions throughout the park.
WB has also owned the Australian trademark for the words “Movie World”, “WB Movie World” and “WB Movie World Gold Coast”, and for the theme park’s logo, since 1989.
Despite the Stateside struggles, Village Roadshow Group CEO Clark Kirby said Movie World was in no danger of becoming a theme park without a theme, with its 50-year relationship with Warner Bros. “as strong as ever”.
Mr Kirby said the Australian group only learned about the bankruptcy filing through the media.
“I have immediately sent notice to terminate VREG’s use of the Village Roadshow name,” he said.
“During Village Roadshow Group’s ownership, VREG had been a successful business producing legacy films.
“VREG is completely separate from the Australian based, Village Roadshow Group.
“The Village Roadshow Group businesses continue to be market leaders in their sectors and highly cashflow positive.”
In its latest financial report, Village Australia’s parent company VRG Holdco said it considered its stake in the flailing American company worthless due to its “significant negative net asset position”.
Village had not received a dividend from the US group for at least the previous two years, but had paid it around $4m a year for film hire and “other film expenses”.
According to the report, lodged in October last year, all debts held by the US company are considered “non-recourse” to the Australian group.
Village Australia reported consolidated revenue of $793.5m, gross assets of $1.7bn and 1631 employees for the 2023-2024 financial year.
LA-based Village Roadshow Entertainment was behind films including the “Joker,” “The Matrix” and “Ocean’s Eleven” movie franchises.
Originally published as US-based Village Roadshow Entertainment files for bankruptcy, “no impact” on Australian group
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