Technicolor Group, the French visual effects company behind notable films and TV shows like Dune and Severance, is on the verge of collapse, putting thousands of jobs at risk. According to Variety, the company has begun winding down operations after failing to secure a new round of investment necessary to keep its international outfit running.

The news comes after Technicolor CEO Caroline Parot sent a message to employees on Monday, citing COVID-19 era setbacks and the 2023 writers strike as two sources of the "severe cash flow pressures" the company has been struggling to deal with. Parot explained that the company has petitioned the Paris Commercial Court to initiate receivership proceedings, a move that will allow the company to explore possible paths to preserve its legacy and secure the future of its teams.

This development is not entirely unexpected, as Technicolor Group has been struggling financially for some time. In 2020, the company was spun off from Vantiva SA (formerly known as Technicolor SA) after the latter filed for Chapter 15 bankruptcy and underwent a large-scale restructuring. Parot has also pointed to Technicolor's separation from Vantiva as a factor that contributed to its current "difficult operational situation."

Technicolor Group's subsidiaries, including Moving Picture Company, The Mill, Mikros Animation, and Technicolor Games, are also affected by this decision. These companies have worked on notable projects such as Spider-Man: No Way Home, Detective Pikachu, Teenage Mutant Ninja Turtles: Mutant Mayhem, and Mass Effect: Legendary Edition.

The company's move to receivership in France is mirrored by its recent decision in the UK to file for administration. In the US, workers have already received WARN notices informing them of the potential for imminent mass layoffs. While Parot has assured employees that every possible path to preserve the company's legacy will be explored, the future of Technicolor Group and its thousands of employees remains uncertain.

This collapse will have significant implications for the entertainment industry, particularly in the visual effects sector. As one of the largest and most prominent VFX companies in the world, Technicolor Group's demise will likely send shockwaves throughout the industry, affecting not only its employees but also its clients and partners.

As the company navigates this difficult period, it remains to be seen what the future holds for Technicolor Group and its subsidiaries. One thing is certain, however: the entertainment industry will be watching closely as this situation unfolds.