Troubled film and television equipment rental firm Matthews Studio Group filed for Chapter 11 bankruptcy Friday in U.S. Bankruptcy Court in the San Fernando Valley.
In an effort to reverse its position and shutter unprofitable arms of the company, the Burbank-based operation has tapped a new chief financial officer and chief operating officer in Miles Stover, who will replace Anil Sharma, who will continue with the company as prexy and director.
Matthews Studio Group, which has been in a restructuring mode for months, supplies lighting, grip, camera and video and audio equipment to film and TV productions.
In January, the company sold its Gotham-based Four Star Lighting Co. division to the company’s existing management and a group of private investors for more than $30 million in cash, strategic alliances and long-term marketing and Internet agreements.
Matthews at the time retained its Four Star Lighting Hollywood business and consolidated the operation under the name Hol-lywood Rental Co.
“Matthews Studio Group has strong cash flow performance,” said Carlos DeMattos, chairman and CEO of the company. “We have spent the past several months attempting to come up with a proposal that would address the company’s challenges outside of a court proceeding.
“Ultimately, the time required to complete a restructuring transaction and the uncertain cost of closing unprofitable locations were too great to overcome.”
Shares of Matthews remained unchanged at $1 on Friday. The company’s one-year trading high is $10.88.