Embattled Relativity Media issued layoff notices to 75 of its 350 employees Wednesday, another sign that the debt-laden entertainment company is on the verge of a bankruptcy filing, Variety Magazine reported yesterday. Word came to workers after CEO Ryan Kavanaugh’s repeated failure to find new investors or loans to plug a yawning $320 million debt obligation. Relativity has postponed the release of several films, stopped payments to many vendors and left workers wondering about the future of the company. The continued retreat of Relativity operations represented another signal of an impending chapter 11 filing, which two sources close to the company now said is expected to come today. The company hopes a filing will help it to reorganize and emerge stronger, under its current leadership, though previously there has been pressure from some lenders to force Kavanaugh out.
