ER has Big Idea about sell-off

Entertainment Rights, the kids media firm behind Postman Pat and Basil Brush, is mulling selling off parts of the business as it looks to reduce its debt.

The company could sell Big Idea, one of its least profitable assets, to reduce debts incurred from buying Classic Media in 2006. Big Idea, part of Classic, owns a number of US children’s characters, including Christian youth brand Veggie Tales.

A spokeswoman for ER told C21 the company was in the midst of a “strategic review” and was considering its options. She declined to comment further.

At the end of 2007, ER was sitting on debts of £107m (US$209.5m) against its market value of £51m. After falling out with shareholders, the company’s founder, Mike Heap, left the company last year and was replaced by the former chairman and chief executive of Warner Music UK, Nick Phillips.

Big Idea has been profitable in the past but needs fresh investment. It is understood that Philips will make a decision on or before June 26, when the company holds its annual shareholders’ meeting.

Earlier this year, ER confirmed it was in takeover discussions with two undisclosed parties – believed to be media mogul Haim Saban and Chorion owner 3i. ER has since confirmed that talks have ceased.