Imagi Shuts Down (Updated)

In what seems like a bad ending to a hopeful story, animation studio Imagi has shut down operations as of yesterday after failing to secure the desired investment capital needed to continue operations, with ongoing talks breaking down between them and their potential investor.

The entire staff of the animation studio has been laid off according to one former employee. All production work on future projects has been halted and follows the closure of the studio’s LA branch last week due to lack of capital.

The studio had been in financial trouble long before the shutdown of the company as far back as 2008 when production on Astro Boy was halted due to lack of immediate funds, which were then provided by a bridge loan.  The studio suffered further losses when the Astro Boy CG adaptation failed to become a box office success despite attracting well-known Hollywood talent to lend their voices to the characters, including William Hurt, Haley Joel Osment and Kristen Bell.

Update: Yahoo Movies has confirmed my initial report from this weekend.  The studio will be liquidated and all future projects will be outsourced instead of being produced internally.  The fate of the Gatchaman production is unknown at this time.

Imagi lost US $93.4 million during the six months prior to the release of its 2009 feature film Astro Boy. The  movie cost $60 million USD to produce but earned only $23 million in box office revenue. Imagi also owes a combined $4.6 million USD to 350 former employees.