Five months after reducing its Los Angeles soundstage operations, Quixote production services has sold off much of its equipment business. Cinelease, a rental company for grip and lighting, announced on September 15 that it acquired Quixote’s assets in Los Angeles and New York, leading to about 60 layoffs, primarily in L.A. The acquired production supplies will now be part of Cinelease Pro Supplies.
Quixote previously announced its plans to wind down most of its Los Angeles soundstage activities, including its major studio locations. The company also closed its Atlanta production services, following similar closures in New Orleans and Albuquerque, although its Griffith Park studio will remain open.
Cinelease, which has been expanding its business since 1977, is also branching into live events and sports, alongside its traditional film and TV work. Quixote, founded in 1995, was acquired by Hudson Pacific Properties in 2022 for $360 million, aimed at satisfying the rising demand for soundstage space.
This decline in Quixote’s operations correlates with a broader slowdown in Hollywood production, as many productions relocate outside California for better tax incentives. Recent trends in studio real estate include large sales and defaults, further impacting the industry.
In light of these challenges, a bipartisan group of congressional leaders recently introduced the Motion Picture, Television and Entertainment Revitalization Act, proposing a 20% tax credit for eligible film and TV productions in the U.S. However, its progression remains uncertain due to congressional scheduling.
