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What The Mill closing means for Chicago’s VFX industry

By Colin Costello
February 24, 2025

Sister publication, Reel 360 News, was the first to break the story of Technicolor Creative Studios’ financial troubles and its decision to shut down The Mill’s U.S. operations (MPC Advertising, Technicolor Games and Mikros Animation), which included its Chicago office.

The closure of the acclaimed VFX house marks a significant moment for the city’s visual effects (VFX) and post-production industry, raising questions about the future of local talent, industry competitiveness, and opportunities for other studios to step up.

There is no debate that The Mill was a dominant force in commercial VFX, collaborating with major brands and agencies. However, financial struggles at Technicolor have led to this unexpected closure, leaving industry professionals to assess the fallout.

A Shifting Landscape for Chicago’s VFX Industry

In 2013, The Mill opened its Chicago studio in the historic Courthouse Place building, sharing space with editorial company The Whitehouse. Over the years, it became a creative hub for high-end commercial visual effects, color grading, and design. Under the leadership of Managing Director Angela Lupo, Executive Producer Blake Nickle (VFX), Executive Producer Alexandra Lubrano (Color), and Executive Producer Elizabeth Newman (Direction, Mill+), The Mill Chicago contributed to some of the industry’s most memorable advertising campaigns.

However, industry insiders suggest that even before last weekend’s announcement, The Mill’s Chicago presence had been gradually waning, with key talent leaving and the company vacating its main office in the West Loop in recent years.

“It seemed to me that The Mill had been losing many key employees over the last few years as well as vacating the main office in the West Loop,” offered Reid Brody, founder of ColorNation. “I don’t see it impacting VFX work in Chicago. There are numerous options here as well as outside of Chicago to accomplish this type of work.”

The Colonie partner, Bob Ackerman, echoed Brody’s sentiment, “With virtual work, having truly taken hold in the VFX industry, I feel like the Mill Chicago was not an identity of local artists as much as one of many sources they were using. That said, now with the demise of the entire national Mill there is an opportunity for a homegrown VFX Company headed by the artists that work and live here. I think in the end it could provide a lot of opportunities, not just for the commercial industry, but hopefully for features and television.”

Heather Mitchell, Partner and Executive Producer at Utopic emphasized Chicago’s resilience in the VFX industry. “Chicago post houses are well set up to handle large-scale VFX projects; The Mill wasn’t the only game in town. Our VFX talent pool is very strong. When The Mill came here in 2013, it not only brought talent from outside the city but I think strengthened the existing talent pool through competition. The rest of us knew we had to step up our game to compete with such a powerhouse. When The Mill Chicago closed its physical doors in 2021, a lot of the artists went freelance and were integrated into our already robust talent pool. Moving forward, Chicago will keep its place as a top contender in VFX content.

Mitchell also noted, “The Mill closing doesn’t signal a change or challenge in Chicago specifically, but perhaps a change for all independent post houses across the nation in that we are all battling with in-house facilities for work that, in years past, would never be considered for an in-house artist.”

“There are already local FX and design shops that have stepped up to fill this void like GoodBit, Almost Gold, Midnight Snack FX along with mainstay Sarofsky,” noted Lisa Masseur, Executive Producer and Founder of Tessa Films. “Carbon, Optimus, and Cutters (Flavor) will I’m sure continue to take on more Design and FX projects that would have also gone to The Mill. I’m sure I’m missing some, but I do think FX work will continue on here.”

Masseur continued, “I hope that many will find work at local companies or that they can work remotely for some of the players producing high-end VFX work like The Artery in NY. I also think some of the in-house Agency and Client units may jump in to scoop up some artists — despite many of us hoping independent companies will continue to keep the top talent employed.”

Production consultant Stephanie Balint said it well in a LinkedIn post, “… This closure also highlights a broader shift in the creative industry. As agency-holding companies consolidate, the landscape for independent studios and boutique creative shops continues to shrink. What was once an industry that encouraged innovation and artistry is now increasingly driven by cost-cutting, scalability, and efficiency. The result? Fewer places where craftsmanship and experimentation can thrive. While business realities evolve, it’s hard not to feel that the loss of creativity is at stake….The industry is changing, but I still believe that creativity persists.”

What’s Next for Local Talent?

For many artists and technicians in Chicago, The Mill served as an important stepping stone in their careers. Now, with its closure, local studios should benefit from an influx of highly skilled VFX professionals.

This shift reflects a broader trend in the industry, where remote work and decentralized teams have become increasingly viable options for VFX artists. The question remains: Will Chicago retain its significance as a VFX hub, or will artists and studios look elsewhere?

“Many key people have already been absorbed into the talent pool here in Chicago,” Brody added. “An artist can now live anywhere and work for anyone in the world, like the Color Nation model for example. The Mill was regularly outsourcing work to artists outside of their network before this recent development.”

Masseur agreed, “I think emerging boutique studios along with existing post houses will fill the gap. But the fact is, budgets these days are the problem.

Industry Resilience and Adaptation

Tom Duff, owner of Optimus, compared The Mill’s arrival in 2013 to the entry of a major corporate disruptor: “When The Mill came to Chicago, it was the industry equivalent of an Amazon bookstore opening. It opened, changed the market, and then it was gone. Given the current state of the business, I think there are a sufficient amount of facilities here to get any job done. If something beyond that is needed, producers are well aware of the many options outside of Chicago.”

Duff also noted that despite initial concerns when The Mill and Framestore entered the market, local studios have continued to thrive:

“As you know, The Mill came to Chicago in 2013, then Framestore in 2017. We were all freaked out, for sure. And rightfully so. And as happens with these kinds of invasions, they pillage the local talent, which they both did. We lost a few, but that is just business, plain and simple. We got it and get it. But we have maintained the personal relationships that we all grew up with together. Nothing can take that away from any of us.”

Ackerman briefly noted what independent VFX houses, both local and national, should be more concerned about: “I think AI poses a far greater threat than just this recent closing. Unfortunately, VFX work in the future is going to require fewer and fewer people. I think those who learn AI and those who have a drive to create unique visual art are the ones that will thrive. The skilled work that can be automated means that there are jobs that may be disappearing very quickly.”

The Rise of Arc Creative and a New Chapter

While The Mill’s doors may be closing, Variety reports its legacy will continue through Arc Creative, a new venture launched by former Mill U.S. artists in partnership with Dream Machine FX. Led by The Mill’s former executive creative directors Robert Sethi and Gavin Wellsman, along with managing directors Angela Lupo and Anastasia von Rahl, Arc Creative aims to build a new home for short-form, high-end advertising, game cinematics, and trailers.

In a joint statement, the former Mill U.S. team expressed their resolve: “While The Mill as we know it has shut its doors, its spirit, its passion, and its legacy live on through its amazing and talented people. After all, it was always the people that made The Mill truly special.”

Dream Machine FX, which owns Important Looking Pirates, Fin, Zero VFX, and Mavericks VFX, will position Arc Creative as a direct successor to The Mill’s commercial work, offering a smooth transition for clients and talent alike. While the report states that Arc will focus on Los Angeles and New York, there is no mention of Chicago at the moment.

With the increasing viability of remote work and the emergence of new business models, the next chapter of Chicago’s VFX industry is yet to be written. For now, one thing is certain: The talent remains, and the industry will adapt as it always has.

This is a developing story...