Digital Domain, the special effects company in which state and local officials poured millions over the past three years — at times ignoring their own safeguards to find the cash – has filed for Chapter 11 bankruptcy.
The news service Reuters reports the embarrassing news for Florida economic development czars as well as elected officials who helped Digital Domain build a film school in West Palm Beach and a lavish animation studios in Port St. Lucie.
The latest move ads to a record-speed meltdown for a company credited for special effects in more than 80 films.
In April, Digital Domain stunned the fans at the famed at California’s famed Coachella music festival by re-creating a live concert by a hologram of long-deceased rapper Tupac Shakur.
The company’s engineers also worked in such Tinseltown blockbusters as the most recent The Watch, Tron and X-Men, Titanic and The Curious Case of Benjamin Button.
Smoke and mirrors, however, didn’t protect Digital Domain from creditors. The company, which bought naming rights to the New York Mets’ spring training stadium nearby, defaulted on a $35 million-loan last week.
CEO John Textor, the West Palm native who originally peddled dreams of Tinseltown East to elected officials, abruptly resigned Friday. Port St. Lucie cops stood watch while the remaining company officials closed the city’s Digital Domain studio — sending 200-plus people to the ranks of the unemployed.
What’s more, Gossip Extra reported exclusively last week that Textor filed police and court complaints about mysterious cyberstalkers scaring his family — “cyberstalkers” who predicted the meltdown in early August.