STX Entertainment, the studio behind Kristen Bell, resonated with all the other under-appreciated mothers in the world, and even spurned a holiday sequel, A Bad Moms Christmas. Hustlers was another one of STX's hits that premiered in 2019. The crime dramedy starring Jennifer Lopez, Keke Palmer, and Constance Wu received very positive reviews as it retold the true story of strippers taking to Wall Street to finagle money out of clients. However, while these films were a success for STX, it wasn't quite enough to fix the studio's problems.
As reported by The Warp, STX Entertainment is selling their 46-film library to pay of their debts. The company announced it would be negotiating with an unknown third party to monetize the revenue from the film library. The revenue will be put towards STX's staggering debts, including a $150.1 million credit facility with J.P. Morgan and $22.7 million in additional debt. However, the studio cannot guarantee that their earnings will be enough to cover the debts nor can they be certain of receiving extensions for their payments. Check out STX's statement below:
The company is currently working with these lenders on several options, including a waiver and extension of this deadline to deliver audited financial statements or paying off the debt. The company cannot provide any assurances that it will be successful in obtaining any extensions or paying off the debt.
STX's financial woes are a combination of box-office flops and damage from the covid-19 pandemic. While STX did boast hits like Bad Moms and Hustlers, it also released films that performed very poorly in the box office including The Mauritanian, Ugly Dolls, and Poms. The company merged with Eros International last year, which is known for its library of Bollywood films, but their financial situation continues to be exacerbated by the pandemic. It remains to be seen if the Bad Moms and Hustlers' studio will get back on their feet and what this means for the future of the films in their library and potential sequels or spin-offs.
Source: The Wrap
