Sat 8th Sep 2012 | News
Digital Domain closes Florida studio, CEO Textor resigns.
Last Tuesday, Digital Domain (DD) released an announcement saying it had defaulted on a payment to a $35 million loan as well as some accrued interest of another $16 million. Digital Domain is closing operations in Port St. Lucie, the company announced Friday morning. The Los Angeles and Vancouver studios are healthy and ongoing. The Digital Domain Institute, based in West Palm Beach is said to be in good shape.
According to a news release, Digital Domain Media Group will be "reducing virtually its entire Port St. Lucie workforce, retaining approximately 20 employees who will remain as part of the wind-down."
About 280 workers are losing their jobs. Employees are packing boxes at the company offices this morning.
Below is the full Press Release from the company this afternoon:
Digital Domain has announced that it has initiated a strategic realignment that will enable it to focus its resources on its core business, Digital Domain Productions, Inc., a company focused on creating digital visual effects, CG animation and digital production for the entertainment and advertising industries. As a key part of this strategic realignment, DDMG has begun the cessation of its Port St. Lucie operations by reducing virtually its entire Port St. Lucie workforce, retaining approximately 20 employees who will remain as part of the wind-down.
DDMG’s studios in California and Vancouver intend to continue to operate without interruption, as will the Digital Domain Institute, based in West Palm Beach, Florida. Long-time Digital Domain executive Ed Ulbrich has been promoted to Chief Executive Officer of Digital Domain Productions.
Digital Domain Productions is working closely with its clients, vendors and other critical constituencies throughout this process.
DDMG is implementing this important operational change and will continue to evaluate various restructuring alternatives, as previously disclosed, as part of its effort to reduce its overhead and restructure its long-term debt.
As previously announced, DDMG is continuing to work with the holders of its senior secured convertible notes, each of whom has agreed to forbear temporarily from exercising its remedies under such senior notes until such time as it elects to withdraw such forbearance on not less than 48 hours’ advance notice to DDMG. An inability by DDMG to quickly access additional sources of liquidity to fund its current operating cash needs would materially adversely affect its financial condition and would require it to seek relief or protection from its creditors.
John C. Textor has resigned, effective immediately, from his positions as Chief Executive Officer and Chairman of the Board of Directors of DDMG, as a member of the Board of Directors of DDMG, and from all positions as an officer and director with all subsidiaries of DDMG.