Relativity Files for Bankruptcy Protection, Puts Film & TV Units for Sale

BEVERLY HILLS: Relativity Media has filed for Chapter 11 bankruptcy protection, and is planning to sell off its television and film units.

Relativity Sports, Relativity EuropaCorp Distribution (the film marketing and distribution joint venture between Relativity and EuropaCorp) and Relativity Education were among those not included in the filing. The company is restructuring some of its businesses, and 75 full-time positions have been eliminated. In addition, Relativity will wind down M3 Relativity, its fashion division.

Along with the bankruptcy filing, Relativity will begin the process to sell itself by October. The company has entered into an agreement from its major lenders, who have put up $45 million to help it in operation. Its TV business, which is behind the upcoming CBS series Limitless, is going to be part of the sale, as is the film unit.

"Relativity continues to pursue its mission as a next-generation global media company, and we remain firmly committed to our film and television businesses. The actions we are announcing today will protect our valuable franchise and allow us to emerge as a stronger, more focused company," said Ryan Kavanaugh, CEO of Relativity. "Our board and management team explored a variety of options to refinance Relativity's debt, and we ultimately determined that the protection afforded by a court-supervised reorganization process will provide additional time and structure to achieve our financial and strategic objectives."

"Regrettably, as a result of the need to reduce costs, we have had to make some difficult staffing decisions, which have included job eliminations," Kavanaugh continued. "We appreciate the dedication of our employees, whose hard work is critical to our success and the future of our company. We intend to move through the Chapter 11 process as quickly as possible."