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.
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
- Wikipedia — The Void (virtual reality) (co-founded by Ken Bretschneider with Curtis Hickman and James Jensen in Pleasant Grove, Utah; first location opened mid-2015; hyper-reality concept combining head-mounted displays, haptic RIG vests and physical stage effects; Ghostbusters: Dimension debuted at Madame Tussauds Times Square 1 July 2016; joined Disney Accelerator July 2017; Star Wars: Secrets of the Empire with ILMxLAB launched 16 December 2017 at Disney Springs and 5 January 2018 at Downtown Disney; by late 2018 locations in London, Dubai, Malaysia, Toronto, Atlanta, Austin, Dallas, Orlando, Minneapolis, NYC, Philadelphia, Washington DC, Anaheim, Glendale, Santa Monica, Hollywood, Edmonton, Mississauga, Las Vegas; defaulted on loan from VR Boom LLC in 2020 after pledging assets as collateral in August 2019; all locations closed permanently March 2020; Disney terminated licensing agreements and leases June 2020; intellectual property transferred to VR Exit, LLC in late October 2020)
- Road to VR, March 2022 — VR Arcade Pioneer The VOID is Making a Comeback (The VOID was evicted from approximately 12 locations after defaulting on loans at the beginning of the pandemic; suffered immediate revenue losses due to pandemic safety measures and failed to secure additional funding; experiences based on Ghostbusters, Avengers, Star Wars and Jumanji at venues including Mall of America and The Venetian Las Vegas; Hyper Reality Partners acquired the patents and trademarks and raised $20 million to relaunch the brand)
spotted an error? The club wants to know.
More like this
IMAX bet on VR arcades — seven centres, two years, total exit
Condé Nast cut Glamour to a skeleton crew a year shy of its centennial
BENlabs, Bill Gates' product placement firm, wound down after a failed AI pivot
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

Comments · 0
Sign in to join the comments.