LOS ANGELES (AP) 鈥 The company had struggled for years, tossed around by pandemic-induced production shutdowns that began in March 2020. Last year, though, business for Valentino鈥檚 Costume Group had finally picked back up.
Hoping to capitalize on that good fortune, the shop moved in January to a North Hollywood space twice the size of its old building.
Then Now, says co-owner Shon LeBlanc, Valentino鈥檚 can no longer afford to pay its rent.
鈥淢y chest is tightening because the money is so tight,鈥 says LeBlanc, bemoaning the apparent lack of urgency to try to reach an agreement with the unions. 鈥淲hen is the mayor going to step in and say, 鈥業鈥檓 ordering you guys to figure something out because you鈥檙e about to collapse the economy in Los Angeles?鈥欌
It has been since members of the and more than a month since the LeBlanc鈥檚 is just one story of many detailing the financial ripple effects.
Few corners of the entertainment industry have been left unscathed
From studio rentals and set construction to dry cleaning for costumes and transportation to sets, it鈥檚 hard to find a corner of the Los Angeles economy that has entirely escaped the reverberations.
鈥淎 movie set in one day can generate tens of thousands of dollars," says Kevin Klowden, chief strategist with the Milken Institute, a think tank that researches social and economic issues. 鈥淒epending on the level of activity, it can be hundreds of thousands of dollars.鈥
The more than 15 years ago, took three months to resolve and is conservatively estimated to have cost $2.1 billion in lost output. This time around, the number will be harder to measure given how much production costs, locations and timelines have changed in recent years thanks to technological improvements and increased globalization.
鈥淲e tend to think of productions as sort of a self-contained thing,鈥 Klowden says, while in reality, a production often spans companies and even countries. Projects are often 鈥渟hipped off鈥 to New Zealand for the addition of visual effects, he cites as an example. 鈥淭he larger a production is, the more likely you are to see a whole bunch of different tax credit mentions at the end.鈥
Both guilds are seeking to address issues brought about by the which have changed all aspects of production, from how projects are written to when they鈥檙e released.
the guild has said the use of small staffs, known as 鈥渕ini rooms鈥 (a riff on the notion of the 鈥渨riters' room鈥), for shorter time periods has made a living income Actors' concerns include protections on
Although talks between the WGA and the AMPTP there are no plans between the actors and studios to return to the bargaining table.
鈥淚鈥檓 not really understanding what the silent treatment is,鈥 SAG-AFTRA President last week. 鈥淚t could be a tactical strategy to see if we they can wait us out until we lose our resolve and then they can make a better deal for themselves.鈥
In an earnings call at the beginning of August, Hudson Pacific executives tried to assuage concerns about the financial impact that the strikes are having on their businesses, while still conceding the reality behind those fears. The company owns both Quixote and Sunset Studios, two major equipment and studio rental companies in the entertainment industry.
鈥淲e鈥檙e all hugely aware of the shrapnel around the industry in general and all of the residual businesses that are getting affected. It will start to feel fairly painful,鈥 warned its chair and CEO Victor Coleman in response to questions of how long the strikes may last. 鈥淚t will be damaging. And I think everybody is very cognizant of that.鈥
The fallout reaches beyond entertainment, into all corners of LA
The uncertain duration of the strikes looms large over every business feeling the financial effects, with fallout spreading well beyond the entertainment industry. Restaurants, coffee shops, that neighbor major studios 鈥 they're all desperate for a quick resolution.
Patys Restaurant, a Toluca Lake staple that boasts regulars including and has seen a major slump in business from diners and catering orders, according to owner George Metsos. He cites lost businesses from obvious patrons 鈥 actors, writers, crew members 鈥 but also speaks of other regulars who aren鈥檛 coming in: electricians, set carpenters and the drivers who stop in for breakfast on their way to work at the nearby valley studios.
Emmanuel Pelargos, who owns Astro Burger across the street from Paramount Studios in Hollywood, says the regular presence of writers and actors has not offset the decline in business from halted productions.
鈥淭hey come in sometimes," he says of the picketers, 鈥渂ut it鈥檚 mostly to use the bathroom.鈥
Corrie Sommers, vice president of the Toluca Lake Chamber of Commerce, says the timing of the strikes 鈥 on the heels of financial recovery 鈥 hits small businesses particularly hard.
鈥淭he strike ... has just set everybody backwards again. Only this time, there鈥檚 not the aid that is needed,鈥 Sommers says. 鈥淣o one鈥檚 saying, 鈥楬ere鈥檚 some free money to bail you out. Here鈥檚 some money to float you through.鈥 That鈥檚 not there anymore. And it鈥檚 affecting everybody.鈥
Sommers, also a real estate agent in the area, cites multiple clients who were interested in buying homes but changed their minds.
鈥淚鈥檝e personally had about five buyers in the last three months say, 鈥業鈥檓 going to have to wait until next year because I don鈥檛 know what鈥檚 happening,鈥欌 she says.
While many on strike acknowledge the financial burdens on both peers in the industry and their neighbors outside of it, the writers are standing by their decision after the much larger actors guild joined them.
Luvh Rakhe, a member of the WGA negotiating committee who has written for hit shows like 鈥淚t鈥檚 Always Sunny in Philadelphia鈥 and 鈥淣ew Girl,鈥 is acutely aware of the financial costs. But he believes people across industries and professions know it is necessary.
鈥淚 don鈥檛 think anyone is, like, blase and happy about the momentary disruption to their lives," Rakhe says, 鈥渂ut they understand why it happened and what it is hoping to achieve.鈥
Despite the burdens being placed on people in peripheral lines of work, many of them say there is a general sense of solidarity. LeBlanc, the Valentino's co-owner, continues to underscore his support, even amid the uncertain future of his 25-year-old business. (To answer his question, Los Angeles Mayor Karen Bass hasn't indicated she will intervene, but did say in a statement in early August that she is 鈥渞eady to personally engage with all the stakeholders in any way possible to help get this done.鈥)
To keep the shop afloat, Valentino's has started a GoFundMe to pay the rent for now. LeBlanc is hopeful that if they can raise enough money for the next month or so, Halloween and school productions starting back up will get them through the rest of the year.
鈥淲e do have things coming up,鈥 he has assured the landlord. 鈥淲e just need to get some money in here to get us over the hump.鈥
