Cats will lose Universal Pictures and Working Title Films at least $71m (£53m) following a disastrous start at the US and UK box office.
The musical, which stars James Corden, Judi Dench and Taylor Swift, cost $90m to produce and an estimated $115m to promote. It has so far only grossed $38m at the global box office.
According to Deadline, the film will incur $71m in losses if it grosses $100m worldwide, which may itself be unlikely based on its gross so far.
Hopes that Cats would emerge as a sleeper hit over the course of the Christmas season, replicating the surprise success of The Greatest Showman in 2017, have also been dashed.
The Hugh Jackman-fronted musical opened to an uninspiring $9m in December 2017, but built an audience through strong word of mouth. By July 2018, it had earned more than $400m worldwide.
Cats, in comparison, has continued to struggle. While films including Knives Out, Frozen II and Jumanji: The Next Level experienced major gains in box office in the days following Christmas, and newcomers Little Women and Uncut Gems opened to enormous numbers relative to their budgets, Cats declined 27 per cent at the US box office.
It has so far grossed just $17m in the US.
Universal is believed to already be washing its hands of the project, with the studio removing the film from its official “For Your Consideration” site ahead of 2020’s awards season.
It has also been dumped from a private streaming service for individuals that can vote for the Academy Awards.
