Toronto-based animation studio Arc Productions has closed its doors.
In a written notice to staff posted at its downtown Toronto office, the animation studio’s CEO Tom Murray wrote that Arc had been experiencing “significant financial difficulties and a liquidity crisis.” As of Friday, July 29, it had ceased operations.
According to the note, an application to place control of the company under Deloitte as an interim receiver has been filed, and employees, of which there are 500 according to Arc’s Facebook page, have been encouraged to contact Deloitte for further information. It is expected that Deloitte will take over as receiver on August 4, at which point Deloitte will take control of the business.
The emotional nature of the closure is clear in Murray’s note, in which he described his pride in Arc’s work and his appreciation of his employees’ dedication. “On a personal note,” Murray wrote, “I am so sorry that, in spite of all of the efforts, I have been unable to resolve this crisis and apologize for that failure.”
He also stated that the company is working to find a solution that will allow it to pay back-wages to its staff.
Arc Productions is one of Canada’s higher-profile animation studios. Formerly known as Starz Animation, the company was restructured under the Arc banner in 2011. Known for its work on both feature films like Gnomeo & Juliet and Dolphin Tale, and animated TV series, some of its most recent service projects included upcoming TV movie Thomas & Friends: The Great Race (Mattel Creations), 2017 Sprout series Kody Kapow (Zodiak Kids) and new Amazon Studios pilot Lost in Oz.
As of press time, Arc Productions could not be reached for comment.