×
You will be redirected back to your article in seconds

Global Road in Crisis: Banks Take Control of Studio

Global Road Entertainment’s financial situation is growing dire. Lenders have taken over control of parts of the studio behind “Marshall” and “Hotel Artemis,” Variety has confirmed.

At an all-hands meeting on Tuesday, staffers were told that management of the company’s domestic feature production and distribution division will now be overseen by its financial backers, according to a knowledgeable insider. Bankruptcy seems like a definite possibility unless Global Road can find fresh sources of capital. The company has been trying to raise $200 million since last winter, but those efforts have been unsuccessful.

Global Road’s television and sales division have not been impacted by the take-over, the insider said. Moreover, the company will continue with this weekend’s planned debut of “A.X.L.,” a family adventure film with Alex Neustaedter. Marketing materials have been paid for in advance, so the cash crunch won’t impact the picture’s distribution.

Global Road raised eyebrows with its 11th-hour decision not to release the Johnny Depp thriller “City of Lies” on Sept. 7, 2018. At the time, the spin was that the studio didn’t want to answer questions about domestic abuse allegations leveled against Depp by his ex-wife Amber Heard or to have to deal with the fallout of a Rolling Stone profile that portrayed the actor as abusing drugs and alcohol. It appears that financial issues may have also played a role in that decision.

Global Road film chief Rob Friedman is expected to remain with the studio for the immediate future, and no layoffs have been announced. Staff has yet to be informed what financial institutions are now in control of operations. Talk that Global Road has been on the verge of imploding has been swirling around Hollywood in recent weeks.

Global Road was created by combining Open Road, the Oscar-winner behind “Spotlight,” and IM Global, a sales company created by industry veteran Stuart Ford. It is owned by Tang Media Partners, a company that is run by entrepreneur Donald Tang. Ford was ousted from Global Road in 2017 and went on to create a new sales and production company, AGC Studios.

Screen Daily first reported that banks had taken control of Global Road.

Popular on Variety

More Film

  • Demi Moore Corporate Animals

    Demi Moore Teases Upcoming Memoir 'Inside Out,' Talks 'Corporate Animals' Team Bonding

    As Demi Moore gears up for the Sept. 24 release of her autobiography “Inside Out,” the actress says she feels like a weight has been lifted. “Even the stuff that I may have been nervous about is completely lifting…because it’s a process,” Moore told Variety at the premiere of her upcoming film “Corporate Animals” at [...]

  • Bloodline

    Film Review: 'Bloodline'

    The manic, filter-free, all-id persona Seann William Scott embodied in the roles that first brought him to attention nearly a couple decades ago — notably teen comedies “Road Trip,” “Dude, Where’s My Car?” and the “American Pie” series — did something inspired with a familiar type. The alpha frat-bro character is usually a villain, or [...]

  • Jack Gilardi, Longtime ICM Partners Agent,

    Jack Gilardi, Longtime ICM Partners Agent, Dies at 88

    Jack Gilardi, a longtime ICM Partners agent who represented such stars as Burt Reynolds, Sylvester Stallone, Jerry Lewis, Charlton Heston and Shirley MacLaine, died Thursday at his home in Los Angeles. He was 88. Gilardi was known for his gentlemanly style, love of the Los Angeles Dodgers and his skill at representing top actors. He [...]

  • Depeche Mode - Dave GahanLes Vieilles

    Depeche Mode Documentary Gets One-Night Theatrical Release

    Depeche Mode has reunited with the group’s long-time filmographer, Anton Corbjn, for a combination documentary/concert film, “Spirits in the Forest,” which Trafalgar Releasing has announced it will put on approximately 2400 screens worldwide for one night Nov. 21. The film documents performance footage from the Berlin dates of Depeche Mode’s 115-gig Global Spirit Tour of [...]

  • Promare

    Film Review: 'Promare'

    Anime maniacs have been waiting for this day: Eight years ago, Hiroyuki Imaishi co-founded Studio Trigger with the goal of one day hatching a feature as wild and innovative as his TV series “Gurren Lagann” and “Kill la Kill.” Now he has. Every bit as loud and ambitious as one might expect from a visual [...]

  • Paul Dano

    Paul Dano in Talks to Join Jane Campion's 'The Power of the Dog' (EXCLUSIVE)

    Paul Dano is in negotiations to join Benedict Cumberbatch in Netflix and Jane Campion’s “The Power of the Dog.” Netflix acquired the film earlier this summer from See-Saw Films’ in-house sales arm Cross City Films. Variety first reported on the project earlier this month and Cross City Films launched sales at the Cannes Film Festival. [...]

  • The Sleepwalkers

    Toronto Film Review: 'The Sleepwalkers'

    Argentine writer-director Paula Hernández likes to explore what happens when characters from different worlds are thrown together. In her latest, “The Sleepwalkers,” which world-premiered in Toronto’s Platform competition before moving on to San Sebastian, the focus is on a discontented mother and her sullen, newly pubescent teen daughter, as they spend a New Year’s holiday [...]

More From Our Brands

Access exclusive content