Studio Behind Recent Marvel Hit Show Files for Bankruptcy
Axis Studios, the Scottish animation company behind Marvel’s new streaming show Eyes of Wakanda, has filed for bankruptcy.
According to publicly available court documents, the company’s collapse was caused by a combination of cashflow problems, industry-wide challenges, and delayed payments from clients.
Eyes of Wakanda, produced by Marvel, is a four-part animated series set in the world of Black Panther. It follows Wakandan warriors traveling across history to recover powerful artifacts, focusing on Noni, a disgraced former Dora Milaje member voiced by Winnie Harlow. Despite the show’s high-profile association with Marvel, Axis Studios could not avoid financial trouble.
Wakanda’s secrets span centuries. Watch a sneak peek of Marvel Animation’s #EyesOfWakanda, and stream the 4-episode series August 27 only on @DisneyPlus. pic.twitter.com/MgoWtVy0Qj
— Marvel Studios (@MarvelStudios) July 1, 2025
The company was well-known for its work in animation and visual effects across film, television, and video games. Axis contributed to popular projects such as Halo, Gears of War, and League of Legends, and also created content for Amazon Prime Video, Netflix, and feature films including Otto and A Shaun the Sheep Movie: Farmageddon.
According to reports from the administrator handling the bankruptcy, Axis Studios struggled with delayed project payments and rising costs. “The industry experienced a downturn in production commissions post-pandemic, particularly in the video gaming sector which comprised the majority of the company’s client base. The company was also impacted by the US writer strikes… and the related actor strike… These significantly pushed out production schedules,” the filings said.
The documents also noted that the company’s business model contributed to cashflow issues. “The company’s workflow was such that only a small number of projects were active at one time and, due to their relatively large individual size, this could produce cashflow pressures until large completion payments were received or in the event significant gaps arose between commissions,” the filings stated.
Even with a strong pipeline of future work, delays in starting new projects worsened the situation. By June 2024, Axis Studios was unable to meet payroll obligations and had to defer payments to freelance contractors. The directors sought external advice for months before hiring an insolvency practitioner.
Financial statements for Axis Productions, the parent company, revealed a consolidated loss of $1.1 million on $32.6 million of revenue for the year ending November 30, 2023, with cash reserves of just $380,000, leaving little room to absorb setbacks.
The bankruptcy highlights the pressures faced by animation and visual effects companies, even those working on major franchise projects. Despite its impressive track record, Axis Studios fell victim to industry volatility, rising costs, and delays that stretched its finances beyond recovery.
The collapse of Axis Studios is a reminder that even highly skilled studios behind major hits face financial risks. It’s a tough industry where timing and cashflow are as critical as talent. What do you think about Axis Studios’ bankruptcy? Share your thoughts in the comments.