Relativity Media filed for bankruptcy protection yesterday against a swarm of disgruntled investors and other creditors, Variety Magazine reported today. The 11-year-old company that founder Ryan Kavanaugh had styled as a “next-generation global media company” will be sold at auction, a statement from the company said. The upcoming sale will center on the enterprise’s film and television units. Left outside of the insolvency action are Relativity Sports; Relativity EuropaCorp Distribution, a joint venture with the European film operator; and Relativity Education. All those units will continue on as independent concerns. The company’s fashion operation, M3/Relativity, was shut down this week and its employees laid off on Wednesday. Kavanaugh and his board proposed the immediate auction of the company, which stated liabilities of up to $1 billion.
