Following World War I, Gaumont suffered economic losses owing to increased competition from American Hollywood productions. In 1925, the studio's output decreased to only three films. In addition, Gaumont was unable to keep pace with the cost of technological changes (e.g., the advent of sound movies). Struck by mounting debts in the early 1930s and the effects of the Great Depression, Gaumont declared bankruptcy in 1935. In 1937, the studio ceased production and operated only as a theater and distribution company. The company was purchased by the French corporation Havas in 1938, was renamed Société Nouvelle des Etablissements Gaumont, and reopened its film production studio.