Relativity’s TV unit to be sold off

Troubled entertainment company Relativity Media has filed for bankruptcy protection this week and has confirmed it will auction off its television and film units.

Tom Forman of Relativity

The US studio founded by Ryan Kavanaugh has been hit by debt and recent flops and has now put itself up for sale. A group of Relativity’s lenders will act as lead bidders for the company’s assets at a bankruptcy auction.

Kavanaugh, who founded the firm 11 years ago, is not believed to be part of the investment group seeking to buy the company’s assets.

Relativity’s TV unit, which is behind forthcoming CBS series Limitless and MTV’s Catfish, is expected to be one of the most hotly anticipated assets in the sale.

Founded in 2008, the division has more than 29 series in production including Tia Mowry at Home and Showtime’s Gigolos with an additional 46 forthcoming projects.

In an e-mail to staff this week, Tom Forman, CEO of Relativity Television, said that “other divisions are undergoing some reorganisation and, as a result, some jobs in those divisions have been eliminated. That part is heartbreaking.

“At Relativity Television, that’s not happening. For us, it’s business as usual. The mission here is to just keep doing what we’ve been doing — with the team that’s been doing it. Quite simply, things in TV don’t change as a result of this process.”

It comes as Relativity Media this week said it was cutting 72 full-time positions and 22 part-time staff.