The 40-year-old entertainment executive, who founded the company in 2004, filed for Chapter 11 bankruptcy protection on Thursday (30Jul15).

Kavanaugh reportedly was unable to make a payment of $320 million (£200 million) owed to creditors, making it one of the biggest bankruptcies in Hollywood history.

The news comes months after rumours of Relativity's financial struggles surfaced, and just a day after it was reported 75 employees were laid off, while bosses also gave up the rights to Natalie Portman's ill-fated Western, Jane Got a Gun, which had been due to open in the U.S. in September (15).

Relativity is the studio behind more than 200 feature films, such as Magic Mike, The Social Network, Fast & Furious 6 and 22 Jump Street.

Kavanaugh, who is reportedly expecting his first child with model wife Jessica Roffey, has more than 60 producing credits to his name and tight working relationships with Leonardo DiCaprio, Bradley Cooper and Ryan Seacrest.