Rhythm & Hues to File for Bankruptcy
Oscar-nominated, VES Award and Annie Award-winning animation studio Rhythm & Hues will be formally filing for bankruptcy on Monday, according to a report by Deadline.
Despite an infusion of cash from Hollywood studios less than a week ago, and a BAFTA win for Best Special Visual Effects for Life of Pi, R&H began informing its employees Sunday night not to show up to work on Monday.
Production on contracted work for Warner Bros’ Seventh Son, Fox’s Percy Jackson 2, and Universal’s R.I.P.D. has been halted, while work on Warner Bros’ 300: Battle of Artemesia may have also been affected. The three studios attempted to keep Rhythm & Hues alive with a joint $21 million infusion before VFX company Prime Focus stepped in as a potential buyer. That deal is now uncertain.
The veteran VFX house (Babe, The Golden Compass) is nominated for the Academy Award for Best Achievement in Visual Effects for its work on Life Of Pi and Snow White And The Huntsman. On Tuesday, Rhythm & Hues received four top prizes at the 11th annual VES Awards for Life Of Pi, where director Ang Lee accepted the VES Visionary award by paying tribute to his VFX team.
The company, which had been struggling financially in recent months, had been expected to be acquired by Indian company Prime Focus. Variety reports that although the Prime Focus deal has fallen through, “several buyers reported interested in acquiring the company out of bankruptcy.”