Nelvana, the Toronto-based animation studio behind beloved children’s shows such as Little Bear, Franklin and Friends and Care Bears, has paused new productions amid its parent company’s financial woes.
“It was announced earlier this year that as certain productions were completed, we would be pausing new studio productions for the time being,” said a spokesperson of Corus Entertainment in an email. Corus bought Nelvana in 2000
Corus had no responded to the Star’s question about what prompted the studio’s shift in focus or the impact of the production wind-down on employees.
Earlier this week, speculation grew in online forums that the 54-year-old entertainment company had quietly closed its doors. The Corus spokesperson denied the rumours and said, “Nelvana is not shutting down.”
The studio, founded in 1971, will continue to operate, “focusing on distribution, merchandising and managing existing properties,” the email read. “As always, we continue to review opportunities and priorities as part of our ongoing business operations.”
As of Wednesday morning, Corus’s stock price was trading at less than nine cents per share.
The media company posted a net loss of $7.3-million in the quarter ended May 31, with revenues declining 10 per cent year on year. Corus slashed seven per cent of employee costs in its last quarter and plans to wind down five kids’ channels this summer amid a slump in advertising revenue.
Some analysts told the Star in 2024 that Corus could be heading for bankruptcy, carrying a staggering debt of more than $1 billion — about $300 million of which is due within three years — if significant overhauls are not undertaken.
With files from The Canadian Press
