Annapurna Pictures, the movie production house and parent company of the game publisher Annapurna Interactive, is considering bankruptcy.
Multiple sources have told Hollywood Reporter that Annapurna Pictures has retained a law firm to explore bankruptcy protection. The company, founded in 2011 by Megan Ellison, had evolved over the years from a production-finance entity to include a full-scale distribution arm whose films include Vice and Sorry to Bother You. However, rumors of Annapurna’s imminent demise have been floating around for the past year. The company was said to have lost so much money — thanks to a string of poor box office performers, including The Sisters Brothers and Destroyer — that it can no longer sustain itself.
Explaining the situation in a letter to staff, Megan Ellison confirmed the company is looking at a variety of “restructuring deals with financial institutions,” but said such a process isn’t uncommon before reiterating her commitment to the cause.
It’s unclear how any potential restructuring deals would impact Annapurna Interactive, and we also have no details on how well the games division has been performing as of late. The studio has published titles such as Florence, Gorogora, and Donut County, and it would be equally as unfortunate to lose them or their movie-oriented parent.
Annapurna’s story will likely unfold over the coming weeks, so check back for more details later.