Wrapbook, Hollywood Production Payroll Company, Among Those Hit By Silicon Valley Bank Collapse – Update
Hollywood production payroll company Wrapbook is among those affected by this week’s collapse of Silicon Valley Bank (SVB), which has now been taken over by the Federal Deposit Insurance Corporation.
SVB, the 16th-largest bank in the US, was a financial hub for technology companies and venture capital, but also had several Hollywood companies as clients, notably Roku. The SVB failure is the second-largest in US history, trailing only Washington Mutual, which was ended in the 2008 recession.
The FDIC insures deposits up to $250,000. But SVB had many clients with millions stored in its accounts, leaving open the question of whether those funds are now lost. Some officials have said the federal government may come to their rescue, but the timetable on that is murky and the action uncertain.
As a result of the SVB failure, Wrapbook is scrambling. “This event will cause payroll to be delayed today, March 10th 2023, and impact the processing of uncashed checks,” the company posted on its Twitter account. “We’ve sent email communications to all companies and their workers – and will continue to operate transparently as this issue is resolved.
“A bank failing is an extreme external event. We apologize, on behalf of all of us at Wrapbook, for any challenge this puts on you,” it concluded.
Wrapbook said it is moving forward with another banking partner for payroll processing.
UPDATE, 3:30 PM SATURDAY: Wrapbook sent the following note out to customers this afternoon:
“I would like to provide an update on how Wrapbook is responding to the collapse of Silicon Valley Bank (SVB), which we were using to move payroll funds.
- Wrapbook uses multiple banks for our operating funds. We have 96% of our funds outside of SVB and have a strong cash position.
- We will use our cash position to provide liquidity to our clients, ensuring that any payroll funds with SVB are covered
- We have remediation plans underway with another bank to resume processing payroll early next week.
- We will reimburse cast and crew for overdraft fees incurred due to SVB’s collapse. Instructions will be emailed to those impacted.
By Monday, we will provide a concrete update on payroll processing. In the meantime, our team is available to answer any questions you may have. Please reach out to us at 845-367-9679 or email@example.com.
UPDATE, SUNDAY, MARCH 12, 3:30 PM: Wrapbook sent the following note out today, according to CEO Ali Javid: “We will begin processing payroll, including outstanding worker payments, on Monday (3/13) via same-day direct deposit (ACH).: