Quixote is closing its New Orleans operations this week, StageRunner has confirmed. The decision comes as Louisiana’s film industry grapples with declining production activity, challenging its reputation as a premier filming destination.

Once a key player in Louisiana’s “Hollywood South” era, Quixote’s departure marks a pivotal moment for the region. In a statement, the company said: “Quixote made the difficult decision to cease operations in New Orleans due to reduced production activity in the market and to focus on our other core markets. All of Quixote’s other locations and services remain fully operational.”

The move highlights the growing difficulties faced by Louisiana’s film sector, which has seen its competitive edge erode due to reductions in its tax incentive program. Earlier this year, lawmakers lowered the annual cap on the Louisiana Motion Picture Incentive Program from $150 million to $125 million, tightening budgets in an industry increasingly drawn to more lucrative programs in Georgia, Texas, and even international markets.

“The legislature’s decision to preserve the incentive with a $25 million cut shows an attempt to keep the program alive, but the cap reduction still makes Louisiana less competitive,” said one industry insider. “Companies like Quixote can only operate in markets with consistent production activity, and unfortunately, Louisiana isn’t one of them right now.”

For decades, Louisiana was a darling of the film industry, earning its “Hollywood South” nickname through early adoption of state incentives and a vibrant production history. Iconic films and series such as Django Unchained, The Curious Case of Benjamin Button, and NCIS: New Orleans were filmed in the region. However, tightening state budgets and fierce competition from other production hubs have dulled its appeal.

Quixote’s closure in New Orleans is a setback for the local industry and raises critical questions about Louisiana’s future in the global production landscape. Without significant reinvestment and strategic innovation, the state risks further losing its standing as a top destination for filmmakers.

Stay tuned for updates as this story develops.