Megan Ellison in a memo to staff on Wednesday denied reports that her boutique film and TV studio Annapurna would be filing for bankruptcy and assured the staffers that it is “restructuring” its financial deals with banks.
“Restructuring deals with financial institutions is not uncommon, yet the process is usually handled without a spotlight on it,” Ellison said in a statement obtained by TheWrap. “Fortunately/unfortunately, people like to write about me and my family. That said, it is of tremendous importance to me that you all know we are as committed as ever to this company and are in full support of our future. Regardless of whatever comes out in the press, the truth is that we are well on our continued path towards success. There will always be speculation, misinformation and personal jabs in the press – that’s part of the business.”
Additionally, Annapurna spokesperson Ashley Momtaheni said in a statement to TheWrap: “The Ellison family is in negotiations to restructure their deals with the banks. They remain in full support of the company and are dedicated to Annapurna’s future.”
The Hollywood Reporter reported on Wednesday that Annapurna had hired a law firm to explore bankruptcy protection. The report came 10 months after TheWrap reported that the company was having financial woes and was reevaluating its film division.
However, an individual with knowledge of the proceedings said recently that the company was “winding down” since Larry Ellison stepped in — however, the studio greenlit a project on Tuesday with Randy McKinnon.
In October, TheWrap reported that Larry Ellison had balked at any further investment after an initial outlay by him and his daughter of more than $200 million. However, a spokesperson had said those are “unfounded rumors.”
In February, Annapurna took a step back from distributing films, refocusing on producing projects. The studio expanded its partnership with MGM, bringing back United Artist Releasing, which now serves as their distribution arm.
The studio has produced or co-produced many prestige projects that have won accolades — from Paul Thomas Anderson’s “The Master” to Kathryn Bigelow’s “Zero Dark Thirty” to David O. Russell’s “American Hustle” — but insiders say that Ellison has overspent on many of them. Their most recent film, “Booksmart,” despite being a critical hit, failed to live up to expectations at the box office.
Their upcoming projects include Cate Blanchett’s “Where’d You Go, Bernadette?” and “Not Fade Away,” which stars Emily Blunt.
Read Ellison’s entire memo below.
Dear AP Team,
I got word this morning that there are some rumblings around town about our current status with the banks and that a story is likely to hit the press at some point today.
Restructuring deals with financial institutions is not uncommon, yet the process is usually handled without a spotlight on it. Fortunately/unfortunately, people like to write about me and my family.
That said, it is of tremendous importance to me that you all know we are as committed as ever to this company and are in full support of our future.
Regardless of whatever comes out in the press, the truth is that we are well on our continued path towards success. There will always be speculation, misinformation and personal jabs in the press – that’s part of the business.
But know, none of that matters to me. What does is your sense of security and protecting the special community and culture at Annapurna. I believe in what we make and have no intention of stopping any time soon.
We have a lot of exciting things on the horizon and I have no doubt all of our hard work will continue to show Annapurna’s unique and powerful place in this industry.