Hackman Capital Partners, which became the largest independent soundstage owner in North America by assembling a major studio portfolio during the production boom, now faces lender action as its financial position crumbles. The company's lenders, led by Deutsche Bank, have initiated sale proceedings for Television City after Hackman accumulated over $357 million in debt. The financial crisis stems from severe production downturns in Los Angeles as streaming services shifted priorities from subscriber growth to profitability beginning in 2022.

The forced sale reflects a broader collapse in entertainment production infrastructure demand. Television production in the Los Angeles area declined more than 50 percent below historical averages by late 2025, worsened by the writers' and actors' strikes and subsequent cost-cutting across major studios. Hackman, which purchased Television City for $750 million in 2019 and Manhattan Beach Studios for $650 million that same year, is losing control of these assets. Real estate developer Rick Caruso, owner of the nearby Grove shopping mall who previously attempted to acquire Television City, emerges as a potential buyer, though legal disputes with neighbouring property owners complicate any transaction.