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Relativity Media goes into turnaround

Nova Safo Jul 31, 2015
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Hollywood studio Relativity Media has filed for bankruptcy after reportedly amassing more than $1 billion in debts. The company’s assets amount to half of that, according to reports. Relativity founder Ryan Kavanaugh wanted to move away from the blockbuster-centric economy that rules the big studios and concentrate on smaller films that could be spun into additional revenue streams on television and the web. But “absent any significant hits, it’s hard to maintain this kind of enterprise for a long period of time,” says John Sloss, an entertainment industry lawyer and film producer. Relativity’s creditors will now have to get in line to get paid.

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