 Under the new owner, the studio was planning to do more proprietary production.On August 1, 2016, Arc Productions announced that they were closing down the studio because they were filing for bankruptcy and locked out over 500 employees after telling them there was a payroll glitch and no one had been paid.On August 10, 2016, following Arc's closure, Jam Filled Entertainment entered an agreement to acquire Arc Productions' assets in which they call "substantially all of the business".