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Alchemy Files For Chapter 7 Bankruptcy Protection, Embattled Distribution Company Owes Many

Once the owner of indie titles like "The Lobster" and "Free Fire," the company will have to sell off more to pay back its creditors.

“The Lobster”

Embattled distribution company Alchemy — previously known as Millennium Entertainment — filed for Chapter 7 bankruptcy protection on Friday in the U.S. Bankruptcy Court in Delaware, Deadline reports. Per the outlet, “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.

READ MORE: Career Moves: Jeff Deutchman Leaves Alchemy, Bob Pilon Goes to Participant and More

Chapter 7 bankruptcy protection (more colloquially 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.”

Deadline is not kidding about that long list of creditors, one that reportedly includes heavy hitters like agencies CAA, ICM and WME, along with the DGA, PGA and WGA pension and health plans, Anchor Bay Entertainment, American Express, Showtime and HBO. Oh, and the IRS. Deadline has shared the full list here.

In February, Alchemy sold off arguably its biggest title, “The Lobster,” to A24, who released the film later in the year and turned the indie festival favorite into a mini hit. In March, Alchemy also sold Ben Wheatley’s next, “Free Fire,” to the indie outfit, who will release it later this year.

READ MORE: Alchemy Names Todd Green Senior Vice President of Digital Distribution

Earlier this year, our Eric Kohn reported on Alchemy’s woes, pinpointing their DVD business as the source of many of their troubles.

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