ER in ‘advanced’ sale talks

Troubled UK children’s firm Entertainment Rights has confirmed it is in advanced negotiations with bidders for the company’s subsidiaries or the entire business and assets.

In an update to the City of London today, ER said that following exploring the options available to stabilise the business, the board is now “committed” to a sale.

“The board has received offers for the company’s subsidiaries or business and assets and is in advanced negotiations with a number of bidders who have substantially completed their due diligence in order to complete a transaction imminently,” ER said in a statement.

So far potential buyers mooted include Chorion, the literary rights company owned by multimillionaire Labour Party peer Waheed Alli and private investment firm 3i, as well as US-owned Hit Entertainment and Italian media giant De Agostini.

“The offers received are at a level that would be acceptable to the board and to the group’s lender, but at which there is no prospect of recovering all of the outstanding debt,” ER added.

The company, which owns characters such as He-Man, Casper The Friendly Ghost and Postman Pat, said it was no longer in an offer period.

ER also said that lenders have extended their short-term funding and had indicated their plan to continue to support the company after February 28 to complete a sale or restructuring.

After incurring debts of around £127m (US$188m), ER recently implemented a cost-cutting programme, which included job losses, an asset sale and a management restructure. Earlier this month, chairman Rod Bransgrove stepped down and will be replaced by deputy chairman Robin Millar.