Popular media company files for bankruptcy, plans to liquidate

For a few years before the Covid pandemic, it seemed like there was an endless amount of money being put into streaming services. Disney, Comcast, Apple, Netflix, and a number of outliers like Verizon and Quibi, were throwing money at seemingly every decent show idea. 

That was a golden period for viewers as services including Disney+ and Apple TV+ had seemingly endless budgets. Instead of parceling out good content and big-name shows, Disney's streaming service offered a new Star Wars or Marvel show on a seemingly weekly basis.

Related: Failed Chapter 11 bankruptcy puts fast food chain in final days

Apple's streaming service and Comcast's Peacock, along with a handful of others, seemed to have an unlimited budget as they fought for subscribers. It was a good period to be a television watcher, but the economics made no sense. 

Companies were spending more money than they were bringing in, and that was not a sustainable model. At some point during the Covid days, it seemed like every streaming player came to the same realization. They had to get smarter about what shows they produced and cut their budgets.

If they weren't smart, they crashed. Quibi raised $1.75 billion in investor money, launched in April 2020 — and shut down in December 2020.  

The contraction left a lot of media companies, actors, and television industry workers hurting. The overall amount of work went from an all-time high to an industry that has swiftly shrunk.

The situation has forced one seemingly successful company into bankruptcy and liquidation.

Nickelodeon partner files for bankruptcy

Having an award-winning show or even multiple award-winning shows, does not guarantee financial success.

Factory Transmedia, a British media company, won a 2024 Emmy for its Nickelodeon Jr. show, "The Tiny Chef Show." It also was nominated for an Emmy for its preschool animated series "Slumberkins."

That level of success was not enough to sustain the company and keep it financially viable.

Factory Transmedia is shutting down after being placed into what's called a creditor’s voluntary liquidation. 

In the United Kingdom, "that means that the company is insolvent and no longer has the funds to pay its liabilities," Cartoon Brew reported.

Factory Transmedia blamed market conditions for its demise in a media statement: 

"Over the last 12 months the number of projects being green-lit by broadcasters around the world has been severely cut as the global economy and audience behaviors have changed markedly; these challenging market conditions were a significant factor in the insolvency of the business."

Factory Transmedia being sold off

Factory Transmedia had been a player in the United Kingdom animation space for more than 20 years. It was involved in a high-profile reboot of "The Clangers," a popular show launched in 1969 which the company helped bring back in 2015.    

"The company was considered to be an animation success story for the Greater Manchester area and had opened a new studio facility as recently as 2017 to accommodate its growing production slate," according to Cartoon Brew. At peak periods of production, it employed more than 100  people. Clients included Disney, Nick Jr., CBBC, and CBeebies.

Its demise was sudden, and the company won't be making a comeback.

JPS Chartered Surveyors has been appointed to help sell off the company's assets through an online auction. That's a somewhat morbid affair which will include selling the company puppets used for the Newzoids satirical sketch show which ran on ITV in 2015 and 2016, as well as its studio equipment, according to a BBC report.

No news has been shared about what will happen to the shows that Factory Transmedia has that are currently in production.