Ryan Kavanaugh, who founded the company in 2004, filed for Chapter 11 bankruptcy protection in July (15). He was reportedly unable to make a payment of $320 million (£213.3 million) owed to creditors, making it one of the biggest bankruptcies in Hollywood history.

Kavanaugh is now looking to revamp the studio and he has acquired Spacey's Trigger Street Productions and put the star in charge alongside his producing partner Dana Brunetti, who will be president.

"They thought we were crazy when we chose to do House of Cards with an online streaming service; they thought I was crazy when I went to run The Old Vic Theatre (in London) when no one thought it could be saved, and this move with Relativity will be proof for some that we really are crazy," a statement from Spacey reads.

"(It's) an incredible opportunity to make great entertainment (and the) next evolution in my career. Having run an independent production company to now be able to run a studio is a great challenge and I've learned that, in the end, it's the risk takers that are rewarded."

"I am thrilled to welcome Kevin and Dana to Relativity," Kavanaugh adds. "Kevin's incredible creative success as a two-time Academy Award winner and star and producer of the critically acclaimed House of Cards speaks for itself. Dana has remarkable instincts and an impressive track record of producing films such as Fifty Shades of Grey and Captain Phillips. Both men share my passion for film and Relativity's unique 360 degree content engine, and I could not be more excited to partner with such talented professionals."

Spacey stepped down as the Old Vic's artistic director in 2014 after running the London theatre for 11 years. He was saluted for his efforts in Queen Elizabeth II's Birthday Honours List last year (15), when she awarded him an honorary knighthood for his services to British theatre and international culture