Berg confirmed the upcoming closing to his staff on Monday morning.
It appears that China-based Bison Capital, which recently took a financial stake in Resolution, has pulled its backing. The agency launched in Jan. 2013 with Jahm Najafi as the primary investor.
Resolution has significant overhead and while it does boast some well-known clients, the bookings have not been able to justify the large salaries that Berg lured top dealmakers with from rival agencies, not to mention Resolution’s lavish Century City offices.
Berg was eager to sign experienced agents that could quickly bring in talent to the fledgling agency, though he may have overplayed its hand in that regard.
While Berg certainly had high hopes for Resolution, the agency lagged behind its competitors when it came to TV packaging, which are among the most lucrative deals in the entertainment business.
Berg plans to turn his attention to helping his staff find new jobs, as both he and his investors did not make good on certain promises.
This is the latest example of why Hollywood should be wary of Chinese financing. There have been many splashy announcements in recent months but not everyone has the patience the entertainment industry requires.