Entertainment Rights, the kids producer and distributor behind series including Postman Pat, has gone into administration and parts of the business have been sold to private equity backed Boomerang Media.
The company, which acquired Classic Media for US$210 million 2006, has been in financial trouble for some time and in January appointed ex-Disney exec Deborah Dugan as CEO and secured a £13million (US$20million) credit line.
However, it was forced to call in administrators Deloitte and sold its trading subsidiaries to Boomerang Media, which is backed by equity firm GTCR.
Nick Edwards, Deloitte partner and Joint Administrator said: “The Board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the company’s debt, raising new equity and a sale of all or parts of the business. Despite the financial support of the group’s lender through this period, the group has been unable to achieve a solvent restructuring of the company.”