Target goes into administration

UK-based distributor Target Entertainment has been put into administration by its parent company, Metrodome Group.

Metrodome, which acquired Target just 18 months ago, said following the tough trading conditions it outlined in a profit warning in December there was “little prospect” of the distributor returning to the black.

This meant it could “no longer continue to support” Target, which distributes nearly 4,000 hours of content from the likes of Monster Animation and Chapman Entertainment, and administrator BDO had been called in to oversee the administration process.

“The board of Metrodome Group announces that it has taken the difficult decision that Metrodome can no longer continue to provide support to its loss-making subsidiary Target,” read a statement.

“Given the tougher than expected trading conditions for Target, as highlighted in the trading update on 21 December 2011, the board believes there is little prospect of Target returning to profitability in the near future.”

Two weeks ago, Metrodome put Target up for sale, 18 months after it had paid £800,000 (US$1.3m) for the company. Then in October last year, Target founder Alison Rayson left the company and handed over to former ITV and FremantleMedia exec Emmanuelle Namiech.

London-based Metrodome’s film distribution arms, Metrodome Distribution and Hollywood Classics, are unaffected by the move.