Todd-Soundelux Files for Chapter 11 Bankruptcy Protection, Shuttering Hollywood and Santa Monica Locations
Burbank to Remain Open Through Restructuring Process
Todd-Soundelux has filed for Chapter 11 bankruptcy protection. Formerly known as CSS Studios, the holding company's brands include Todd-AO, Soundelux, and POP Sound.
In bankruptcy papers filed in U.S. bankruptcy court in the Central District of California, the company estimated both assets and liabilities at between $1 million and $10 million. The single biggest creditor listed in the filing is Ascent Media, to whom Todd-Soundelux owes nearly $300,000.
Deadline Hollywood reported that Soundelux's facilities in Hollywood and Santa Monica were closed yesterday and about 30 of a total 200 employees were laid off, though the company's Burbank operations are staying open.
In court papers, the company said it had been extended a $5,000,000 credit facility through PNC Bank and asked for court approval to access those funds in order to meet payroll and other costs of day-to-day operations. Todd-Soundelux chair David F. Alonso is founder, chair and CEO of Empire Investment Holdings, the Miami firm that owns Todd-Soundelux.
The company's recent credits include Lone Survivor and Game of Thrones.