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Inception Media Group Files for Bankruptcy

22 Jul, 2017 By: Erik Gruenwedel



Citing fiscal challenges, independent home entertainment distributor Inception Media Group has filed for Chapter 7 bankruptcy protection. Filed June 23 in U.S. Bankruptcy Court for the Central District of California in Los Angeles, Inception listed debts of more than $1 million and assets less than $50,000. 

In March, Inception said it had found a buyer in Canada — a deal that apparently didn’t come to fruition.

Inception was co-founded in 2009 by David Borshell, a long-time executive with Image Entertainment. It featured a catalog of more than 150 movies and 2,500 hours of digital content. IMG’s distribution infrastructure included direct sales agreements with television networks, online retailers, streaming providers, video retailers and wholesale distributors. The company also distributed programming on behalf of third parties.

Inception listed year-to-date revenue of $378,000, compared with 2016 revenue of $1.9 million and $3.4 million in 2015.

A person familiar with the filing said there are “a lot of people hurt” by the filing, including filmmakers, designers, publicists and former employees.

A meeting of creditors, which number at least 25, is slated for July 31.
 


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