UK factual prodco Electric Sky Productions has entered administration citing a ‘sharp deterioration in trading”.
TBI understands sister business Electric Sky, comprising the distribution side of the business, is not part of the administration process, but the financial difficulties at the production offshoot raise questions over its future.
Rumours have been circulating in recent weeks that Electric, which is based in Brighton and owned by David Pounds (left), was laying off staff amid financial difficulties.
It said today that restructuring firm FRP Advisory has been appointed as the administrator to both Electric Sky Production Limited and its post-production offshoot BTV Post.
In a statement issued today, Electric Sky said: “The sudden curtailment of a significant contract left management with no alternative but to seek the protection of administration, resulting in the immediate loss of the majority of the workforce.”
The staff of the businesses have been laid off and are understood to have already exited. Four members of staff across the production and post businesses will stay through the administration process to and help fetch the best price for the assets that are being sold.
Electric Sky said that the administrators “are working closely with senior management to liaise with the businesses’ array of customers and suppliers to ensure an orderly realisation of value for work in progress while the businesses and assets are marketed for sale”.
Ian Vickers, partner at FRP Advisory and joint administrator, said: “Despite a breadth and depth of loyal partners, regrettably the businesses could not maintain their operational structure following an abrupt termination of a key contract, leaving no viable alternative but to seek the protection of administration.”
“Given the sudden loss of cash-flow, the vast majority of staff had to be let go while a skeleton workforce is being retained during the administration process to help unlock all possible value for the benefit of all stakeholders. We shall be marketing the businesses and assets of the companies for sale,” he added.
The Electric Sky business, which handles international sales, is still running and was answering calls today. The company was registered at MIPCOM, but had just three registered attendees: managing director Pounds, head of acquisitions Stella Briley and acquisitions exec Victoria Stubbs.
Its future is unclear in the wake of the Electric Sky Productions and BTV news. The company declined to comment.