It seems that all the awards in the industry is not enough to keep a company afloat (not that they can be literally converted into payroll money), as the legendary visual fx and animation studio Rhythm & Hues has just filed for bankruptcy, after an acquisition deal from Indian-based Prime Focus fell through.
Rhythm & Hues is most famous for the two Oscars that they have garnered for their work on Snow White & The Huntsman, as well as the more recent Life of Pi, which garnered them an Annie, a special effects BAFTA, and four VES Awards. According to a report by effects industry blog VFX Soldier, Rhythm & Hues has already notified employees that their payroll is delayed.
Like many small VFX shops these days, Rhythm & Hues is currently having a hard time competing with studios based in countries that have government tax incentives and cheaper labor. Since R & H’s inception in 1987, the studio has already won numerous awards and accolades for their work on many high profile and blockbuster features such as Babe, Cats & Dogs, The Golden Compass, Scooby-Doo and the Alvin and The Chipmunks movies.