The three companies are vying to buy the company, which owns the rights to kids brands including Postman Pat and Basil Brush. Private equity company DLJ Merchant Banking Partners also expressed an interest, although have reportedly balked at the current asking price.
Entertainment Rights has struggled over the last few months and confirmed that it is in talks with potential investors. The company has also taken legal action against its North American DVD distributor Genius Productions for not yet paying “certain trading and advance fees”.
Entertainment Rights, which also owns the Classic Media catalog after it acquired the property last year, appointed ex-Disney exec Deborah Dugan as CEO last month and also secured a new £13 million (US$20 million) credit line that will cover cash shortfalls until February.