Relativity Media on Thursday formally filed for Chapter 11 protection in federal bankruptcy court in N.Y. "The Chapter 11 process will enable Relativity to continue to operate while restructuring its finances, thereby preserving value for its stakeholders," the company said in a statement. Relativity Sports is a separate company from Relativity Media and is not part of the bankruptcy filing, sources said. Relativity Media is a minority shareholder in Relativity Sports, but the sports company has its own financial arrangements. A Relativity Sports source on Wednesday said that the sports agency is unaffected by the financial situation at Relativity Media (Liz Mullen, Staff Writer). The WALL STREET JOURNAL's Fritz & Schwartzel report M3/Relativity, a 2-year-old business that "advises and incubates fashion ventures, was shut down earlier this week as Relativity Media laid off 75 employees." Among the unit’s efforts had been "building a fashion line" called Beast Mode for Seahawks RB Marshawn Lynch. Sources said Relativity Media owns 25-30% of Relativity Sports. A source added that Relativity Sports "has made a documentary" on Rockets C Dwight Howard and deals for mobile content "on its own, separate from the studio, and that the strategy will remain viable regardless of the future of Relativity Media" (WALL STREET JOURNAL, 7/31). VARIETY's Brent Lang cited sources as saying that the sports agency will be "unaffected by the filing." Its majority owners are Colbeck Capital, Penguins co-Owner Ron Burkle's Yucaipa Companies "and the agents themselves" (VARIETY.com, 7/30).
