Relativity Sports, Relativity EuropaCorp Distribution and Relativity Education weren’t included in the bankruptcy filing.
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In addition to the 75 layoffs announced Wednesday, Relativity is winding down M3 Relativity, its fashion division.
The company has been the subject of wide speculation in Hollywood for weeks, having to push back the release dates of some of its biggest movies, including “Masterminds” starring Zach Galifianakis and Kristin Wiig, as it dealt with financial problems.
Relativity Media was founded in 2004 and was dubbed a “mini-major” studio with releases including Oscar-winners The Social Network and The Fighter. The company is restructuring some of its businesses, and 75 full-time positions have been eliminated.
TV drama Limitless, based on the Relativity movie of the same name starring Bradley Cooper, will be screened on CBS this year, it added. “With over $350 million in outstanding matured secured debt and unable to finalize any further financing, the Debtors determined it was in their best interests to file for bankruptcy protection”.
A group of Relativity’s lenders will serve as the stalking horse, or lead bidder, for the company’s assets. According to a statement, and Relativity said it hopes to close a sale with a new owner by early October.
Still, the company took chances and it employed lots of people, many of whom are already out of work.
“Relativity continues to pursue its mission as a subsequent-era global media firm”, Kavanaugh stated in a press release. The last movie distributed by the studio to gross more than $50 million at the domestic box office was “Free Birds” in November 2013. “The actions we are announcing today will protect our valuable franchise and allow us to emerge as a stronger, more focused company”, Ryan Kavanaugh, the company’s chief executive officer, said in a statement Thursday.
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“Regrettably, as a result of the need to reduce costs, we have had to make some hard staffing decisions, which have included job eliminations”, Kavanaugh continued. As previously announced, the Company plans to release Masterminds and Kidnap. The Company has filed a variety of customary first day motions with the Bankruptcy Court to request, among other things, the authority to continue to pay employee wages, salaries and benefits.
