Entertainment rights on its last financial legs
We haven’t had a good, depressing, "the economy sucks and it’s even affecting my comics!" story in a while, but here’s a doozy: ICV2 reports that British company Entertainment Rights, which owns the video rights for Gumby, Casper the Friendly Ghost, Felix the Cat, She-Ra, Ghostbusters, The Lone Ranger, Lassie, Mr. Magoo, Rocky & Bullwinkle, Veggie Tales and a host of other characters, as well as the Filmation archives and the Turok video game, is running out of time to find new investment or an acquirer to avoid going out of business– and like everybody else, is scrambling. The company loaded up with debt when it bought Classic Media in 2006 and ran into loan trouble last year.
Among options being considered are hitting up existing stockholders for additional investment, a sale of the company, or new loans. It received an infusion of 13 million pounds from its main lender in December, which will carry the company through February. Expenses are also being cut, with a third of the company’s employees let go. Bad debt from the failure of British retailer Woolworths is also weighing on the company.
No word how this would affect the numerous movie deals in place with a number of their characters, including the Masters of the Universe film, or any other licensing deals in place.