Wrapbook, a Hollywood production company, is affected this week, among other things, by the collapse of Silicon Valley Bank (SVB), which has now been taken over by the Federal Deposit Insurance Corporation.
SVB, the 16th largest bank in the US, was a financial hub for tech companies and venture capital, but also had several Hollywood companies as clients, most notably Roku. SVB’s bankruptcy is the second largest in US history, behind only Washington Mutual, which ended during the 2008 recession.
The FDIC insures deposits up to $250,000. But the SVB had many clients with accounts in the millions, so the question remains whether these funds are now lost. Some officials said the federal government could come to their aid, but the timeline for doing so is unclear and action uncertain.
Due to the failure of the SVB, Wrapbook is encrypted. “Today, March 10, 2023, this event will result in a payroll delay and affect the processing of unpaid checks,” the company posted on its Twitter account. “We have emailed all companies and their employees – and will continue to work transparently while this issue is resolved.
“A bank failure is an extreme external event. We apologize on behalf of all of us at Wrapbook for any challenge this presents to you,” it concluded.
Wrapbook said it is moving forward with another banking partner for payroll.
UPDATE, SATURDAY 3.30pm: Wrapbook sent the following message to customers this afternoon:
“I want to provide an update on how Wrapbook is responding to the collapse of the Silicon Valley Bank (SVB) we used to transition payroll.
- Wrapbook uses several banks for our working capital. We have 96% of our funds outside the SVB and have a strong cash position.
- We will use our cash position to provide liquidity to our customers and ensure that all wages are covered at SVB
- We have recovery plans underway with another bank to resume payroll early next week.
- We reimburse the cast and crew for the current account costs incurred as a result of the insolvency of the SVB. Instructions are sent to interested parties by email.
We will give a concrete update on payroll on Monday. Meanwhile, our team is ready to answer all your questions. Contact us at 845-367-9679 or [email protected]
Honest,
Ali Jawid
Co-Founder, CEO”
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
