Alchemy, the distribution company formerly known as Millennium Entertainment, filed for Chapter 7 bankruptcy protection on Friday in the U.S. Bankruptcy Court in Delaware, court records show. In its petition with the court, the state that they have $50M to $100M in liabilities compared to $10M to $50M in assets. The company has yet to file financials or a schedule with the court so more will be revealed when they do.
A Chapter 7 bankruptcy protection — also known as liquidation — will allow Alchemy to relieve itself of debt by selling off assets so at least some creditors can get paid. Because Alchemy acquired content distribution outfit Anderson Digital a year ago, there was a separate filling for that company. So there are two debtors but leaving a long list of creditors that runs over 290 pages.
In the petition filed with the court, it states that it has 200 to 999 creditors, however other documents show about 8,700 — in fact, 290 pages of creditors that includes CAA, ICM and WME, the DGA, PGA and WGA pension and health plans, the IRS, Anchor Bay Entertainment, American Express, House of Blues, AFM, Showtime and HBO, to name only a handful. Take a look at the long list of creditors here.
The filing was not unexpected as Deadline first reported the financial woes of the company was pushing the company into bankruptcy last month. In February it began selling off titles — like The Lobster to A24 — and then began laying off its staff. As we have seen with other bankruptcy proceedings (such as Relativity), a company’s workforce is always affected. In this case, about 40% to 50% were let go with another round of layoffs hitting last month.
At least one creditor – faith-based DVD and Blu-ray movie company Excel Entertainment — filed suit seeking $838,074.45 from an Alchemy, noting that it hadn’t gotten paid since September 2015. With few assets to liquidate, we doubt its creditors will see much of anything. The Bankruptcy trustee lawyer was unreachable at press time.