Row K on Ice: Owner MCT Freezes Film Distribution After Missed Payroll, Rent Payments | Exclusive

Media Capital Technologies (MCT), the owner of troubled distributor Row K Entertainment, has officially frozen all film distribution plans after the company missed payroll, rent payments, and health insurance obligations this month, TheWrap can exclusively disclose. According to an MCT spokesperson, the decision to halt new activities and significantly reduce operating expenses was made to refocus on the company's core business.

MCT maintains its belief in the potential of U.S. theatrical distribution but is currently prioritizing its core operations. The financial struggles mark a significant reversal for Row K, which made a splashy entry into the distribution space last year by launching and acquiring four films at the Toronto International Film Festival.

However, only two of those movies were released, with Row K offloading the rest after "Dead Man’s Wire" received a disappointing worldwide opening with grosses under $4 million. The company has also missed other critical payments, including rent and health insurance, leading to employees having to pay out of pocket for medical procedures.

No employees have been paid in several weeks, and the company is behind on several settlement payments related to confidential lawsuits settled this year. MCT, which was co-founded by Christopher Woodrow, cited "willful misconduct" in a suit filed by BANKEX, alleging that Woodrow failed to make agreed payments and transfer ownership stakes under a 2019 purchase agreement.