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The encyclopedia · Strategy & Leadership · Strategic decision · 2015–2020

The VOID put Star Wars in a warehouse — then lost every room it rented

The VOID grew to nearly 20 hyper-reality VR venues with Disney's blessing, defaulted on its loans when the pandemic hit, and lost every location by mid-2020.

The VOID · 2020-06

What happened

The VOID, co-founded by Ken Bretschneider in Pleasant Grove, Utah, opened its first location in 2015 with a promise it called hyper-reality: headsets and haptic vests inside physical stages with walls, heat and wind, so players walked through a real space that mapped onto a bigger virtual one. Ghostbusters: Dimension debuted at Madame Tussauds in Times Square on 1 July 2016, and in 2017 The VOID joined the Disney Accelerator; that December, Star Wars: Secrets of the Empire, built with ILMxLAB, opened at Disney Springs and Downtown Disney.

Expansion was fast and leased. By late 2018 there were locations from London and Dubai to Toronto, Kuala Lumpur and Las Vegas — Mall of America, The Venetian, shopping malls and tourist districts. The model needed those rooms full. The company put its assets up as loan collateral in August 2019, and when pandemic shutdowns arrived in March 2020 every location closed at once; revenue went to zero overnight and the loan went into default.

The evictions followed: The VOID was pushed out of roughly 12 leased locations, and in June 2020 Disney terminated its licensing agreements and leases, citing breach. By late October 2020 filings showed the intellectual property had moved to a holding company, VR Exit, LLC. The pioneer of location VR ended with no locations at all — the rooms belonged to landlords, and the magic needed them.

Why it happened

  • A leased-room model with heavy build-outs carried fixed costs that collapsed the moment pandemic shutdowns cut revenue to zero.
  • Assets pledged as loan collateral in August 2019 left no cushion when the default came.
  • Disney's licensing — the brand's biggest draw — was terminated the moment the agreements were breached, taking Star Wars with it.
What it costEvery location, lost in one yearcostly

The lesson

The VOID built a premium experience on rented rooms and borrowed money. When the pandemic emptied every room at once, the landlords took the space, Disney took the IP, and the pioneer had neither.

Aftermath

Hyper Reality Partners acquired The VOID's patents and trademarks and raised $20 million toward a relaunch announced in 2022.

Sources

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