Monday, 10 August 2009


It has been four months since Entertainment Rights PLC went into administration on 1st April 2009 and immediately sold off its business and assets to the original vendors of Classic Media Holdings.

Soon after the Classic Media deal had been consummated in January 2007 and significantly in advance of its administration the board would have been aware that the enlarged company was in decline. The sudden departure of Mike Heap in March 2008 was a clear indicator that all was not well.

It was clear from the 2006 report and accounts that the company was practically insolvent prior to the January 2007 completion of the Classic Media deal. Clearly the board and its (greedy £7 million fee) advisors deliberately hid this fact from shareholders in the deluded belief that such a gigantic international deal would turn the company around.

Instead they heavily overpaid for a tired and worn out catalogue of intellectual property rights that no one else was prepared to pay that much for. They hatched a deal with Genius a video distributor to underpin the values of Classic Media whilst they probably knowingly knew that the deal was flawed from the start and would need to be revisited.

If the advisors had been doing their jobs properly this would have been highlighted in their due diligence and short form reports. If it had been highlighted this deal would never have got off the ground and instead shareholders would have been tapped for a “rescue rights issue” which the board and its corporate advisors would have known most institutional shareholders and private shareholders would have avoided.

The failure was inevitable Mike Heap and the rest of his executive board knew this and ultimately found a way to exit the company with generous pay offs leaving the sleeping non-executives in the mire. Rod Bransgrove who seemed more preoccupied in his Hampshire Cricket business finally awoke when it was too late, he’d taken the company’s “silver dollar” non-exec chairman’s fees for too long. Yes he invested in the company, he also selected Mike Heap followed by Nick Phillips as CEO but It now appears that he along with the other non-executives failed in the proper supervision of the executive board. Perhaps they were too distracted by their other interests to detect the impending failure or had no real connection to the industry that the company was in or was it simply that they didn’t care until it was too late.

As recently as last years AGM, Chairman Rod Bransgrove, CEO Nick Phillips and CFO Elizabeth Gaines were painting a scenario to shareholders that clearly was a distortion of fact, they knew it, the board as it was then knew it, but nevertheless shareholders were deliberately misled. Had the FSA not stepped in and punished the company with a huge financial penalty of £350,000 (discounted for early settlement) for the failure to disclose information thereby creating a false market in its shares. Shareholders may never have been the wiser that this was due entirely to the irresponsible behaviour of its board for misleading the market. This final event turned out to be the beginning of the end for the company and its remaining original board of directors.

So where does the blame for Entertainment Rights failure lie;

1) With the executive board Mike Heap CEO, Elizabeth Gaines CFO and Jane Smith who were aware of the company’s pending failure hastened by the poorly constructed deal to acquire Classic Media.

2) With the vendors of Classic media for overstating its value, then buying it and the enlarged business back for a fraction of its “perceived” value.

3) With the company’s advisors to the Classic Media transaction and their failure to highlight the flaws in the transaction in their due diligence.

4) With the non-executive chairman and fellow non-execs who failed in their fiduciary duties to properly control the executive board.

Sunday, 17 May 2009


ENTERTAINMENT RIGHTS PLC and Case No. 12673 of 2009


6 MAY 2009

Nicholas Guy Edwards & Carlton Malcolm Siddle
Deloitte LLP
60 Shoe Lane









1. Statutory Information of Entertainment Rights Plc

2. Statutory Information of Entertainment Rights Overseas Holdings Ltd

3. Summary of Directors’ Statements of Affairs of Entertainment Rights
Plc - To Follow

4. Summary of Directors’ Statements of Affairs of Entertainment Rights
Overseas Holdings Ltd - To Follow

5. Abstract of Receipts and Payments of Entertainment Rights PIc - To Follow

6. Abstract of Receipts and Payments of Entertainment Rights Overseas Holdings Ltd - To Follow


For the purpose of this report the following abbreviations shall be used:

Act Insolvency Act 1986 (as amended)

the Administrators Refers to the Administrators, Nicholas Guy Edwards and Canton Malcolm Siddle

the Companies Entertainment Rights Plc and Entertainment Rights Overseas Holdings Ltd

Boomerang Boomerang Media LLC

Classic Media Cassic Media UK Limited and Classic Media Holdings ER, LLC

Close Brothers Close Brothers Corporate Finance Ltd

Deloitte Deloitte LLP

m Million

the Group Entertainment Rights Plc and its subsidiaries

the Lender Bank of Scotland plc

Rules The Insolvency Rules 1986


1.1 Introduction

This report is prepared pursuant to Paragraph 49 of Schedule B1 of the Act. The purpose of the report is to provide creditors with details of the Administrators’ proposals to achieve the purpose of the Administration Order.

To assist the creditors the following Information is included in the report;

• Background to the Companies;

• The circumstances giving rise to the Administration;

• the manner in which the affairs of the businesses have been managed;

• Realisations, fees and expenses; and

• Other Information to assist creditors.

As there are insufficient funds for a distribution to be made to unsecured creditors of the Companies other than by virtue of Section 176A(2)(a) of the Act, and in accordance with Paragraph 52(1)(b) or Schedule B1 of the Act, the Joint Administrators will not be convening a creditors’ meeting, unless required to do so.

Should creditors of the Companies, whose total debts amount to at least 10% of the total debts of the respective company, wish to request a meeting to be held they should complete the attached Form 2.21B and return it within the deadline stated. In the event that no requests (in the prescribed manner) are received within 12 days of issue of this statement, the proposals will be deemed approved..

If the Administrators receive such a request they will notify all other creditors and they will hold a meeting within 28 days of receipt of the request.

1.2 The Companies

Entertainment Rights Plc was Incorporated In July 1989. Statutory Information on the company including details of the Directors, Company Secretary and Shareholdings is provided in Appendix 1. Entertainment Rights Overseas Holdings Ltd was incorporated In December 2007 and was an intermediate holding company within the Group Statutory information is also provided in Appendix 2

The principal activity of Entertainment Rights Plc and its subsidiaries was exploiting a range or intellectual property that it either owned or had rights to on global level, the intellectual property was focused on children’s entertainment, particularly pre-schoolers, with revenue derived from both exploitation, of the brands themselves and their associated content.

Entertainment Rights Plc held the rights of various global characters, including
Postman Pat, Rupert Bear, Basil Brush, Where’s Wally?, Lassie, The Lone Ranger

Casper the Friendly Ghost, Veggitales, Guess with Jess, He-Man and the Masters
of the Universe, Fat Albert and the Cosby Kids, She—Ra and Jim Jam and Sunny, as well as limited rights to brands such as Barbie and Transformers.

Until the date of appointment of Administrators, Entertainment Rights Plc was listed on the main market of the London Stock Exchange and had banking facilities secured by a fixed and floating charge. debenture with cross guarantees from trading entities within the Group.


2.1 Events Prior to the Administration

The Group’s growth until 2007 had largely been underpinned by small to medium sized UK acquisitions. In January 2007, it acquired Classic Media Holdings Inc a US business incorporating the Big Idea subsidiary, which more than doubled Group revenue.

In February 2007, the market capitalisatlon of Entertainment Rights Plc peaked at £267m but following poor results announced in September 2007 and a profit warning in January 2008, the market capltalisation had declined significantly to £20.5m by 22 October 2008.

The adverse economic environment which affected all divisions was compounded by the collapse of Woolworths plc and Circuit CIty in the United Kingdom and United States respectively. Trading was further impacted by the financial Instability of the Groups US distributor which resulted in an uncollectible debt post Christmas 2008 trading.

Entertainment Rights Plc sought advice from its professional advisers as to the options available that might preserve value In the Group. The company subsequently instructed their advisers, Close Brothers, to undertake a formal sale of business exercise as set out In paragraph 3.2 below.

Based on the offers received by Entertainment Rights Plc, the directors (following discussions with the Companies Lender) progressed the three offers that were of merit and it was subsequently concluded, in conjunction with the company’s professional advisers, that the transaction could only be effected by way of an Administration of the Companies.

2.2 Details of the Appointments of Administrators

Nicholas Guy Edwards and Canton Malcolm Siddle, partners in Deloitte LLP, were appointed Administrators of the Companies on 1 April 2009. The appointments were made by the High Court in London (Court reference number 12673 of 2009 and 12674 of 2009) following an application by the directors of the Companies.

For the purposes of Paragraph 100 of Schedule B1 of the Act the Administrators have confirmed that they are authorised to carry out all functions, duties and powers by any of them jointly or severally.

2.3 Purpose of the Administration -

From 15 September 2003 the Enterprise Act 2002 replaced the previous four purposes of administration with one overarching purpose, split into a three part single purpose:

i. firstly, to rescue a company as a going concern (in other words a restructuring which keeps the entity intact).

ii. Secondly, If the first purpose is not reasonably practicable (or the second purpose would clearly be better for the creditors as a whole), then the Administrator must perform his functions with the objective of achieving a better result for creditors than would be obtained through an Immediate liquidation of the company. This would normally be by a sale of the business and assets as a going concern.

iii. Thirdly, if neither of the first two parts or the purpose are reasonably practicable, the Administrator must perform his functions with the objective of realising property in order to make a distribution to secured and/or preferential creditors.

The Administrator must perform his functions with the objective specified In (i) above unless he thinks that it is not reasonably practicable to achieve or that the objective in (ii) would achieve a better result for the company’s creditors as a whole. The Administrator may only perform his functions with the objective specified In (iii) above if be thinks that it will not, unnecessarily harm the interests of the creditors of the company as a whole and that the objectives in (I) and (II) are not reasonably practicable to achieve.

Having given careful consideration to the prescribed objectives the Administrators concluded that the second objective namely “achieving a better result for creditors than would be obtained through an immediate liquidation of the Company” was achievable and that is the purpose of the Administration of both of the Companies. The Administrators concluded that an Administration process would enable then to rapidly sell the shares in the subsidiaries of the Companies such that there was minimal disruption to ongoing trading, minimising any loss of value in the Group as a whole and consequently enhancing the value of the Companies’ assets as compared to the outcome in liquidation.

2.4 Statements of Insolvency Practice (SIP) 16 Pre-packaged Sales in Administrations

The purpose of SIPs is to set out basic principles and essential procedures with which insolvency practitioners are required to comply.

In SIP 16, a ‘pre—packaged sale’ (or ‘pre—pack’) refers to an arrangement under which the sale of all or pant of a company’s business or assets is negotiated with a purchaser prior to the appointment of an Administrator, and the Administrator effects the, sale immediately on, or shortly after, his appointment. The sale to Classic Media (referred to in Section 3 of this report) constituted a pre-packaged sale as defined in SIP 16.

SIP 16 requires disclosure to be made to creditors in respect of the circumstances surrounding the sale and certain details of that sale. Full disclosure was made In our letter sent to all creditors On 1 April 2009 of which further copies are available on request.


Following their appointment, the Administrators successfully concluded the sale of the Companies’ business and assets, namely being the 100% shareholdings in subsidiaries and intellectual property for total consideration of £60m to Classic Media UK Ltd and Classic Media Holdings ER LLC (owned by Boomerang).

3.1 Funding and Security

Entertainment Rights Plc had banking facilities In place with the Lender, which as at the date of the appointments totalled approximately £177m per Appendix 3.

The debt was secured by a fixed and floating charge debenture with cross guarantees in place with Entertainment Right Plc’s main operating subsidiaries.

3.2 Marketing of the Entertainment Rights Plc’s Business

A formal sale of business process was run by Close Brothers during December 2008 and January 2009. Thirty-eight parties in total had expressed Interest In Entertainment Rights Plc by December 2008.

The interested parties were subsequently invited to submit proposals to Close Brothers by mid January 2009 following a due diligence period granted to the interested parties. No member of the Group or management was allowed to participate in the sale process to avoid any conflict of Interest.

A total of eight proposals were submitted to Close Brothers, all of which included further due diligence requirements and all of which implied current business value at significantly below the bank debt of the Group with substantial write-down of the bank debt required.

At the Lenders request, Close Brothers continued the sale process to obtain best and final offers from bidders with a final deadline for bids of 20 February 2009. As at that date two final offers had been received by Close Brothers from Saban Capital Group Inc and Boomerang which were progressed.

3.3 The Offer

Boomerang’s offer was conditional upon the transaction being executed by an Administrator of the Companies following an Administration appointment.

The consideration offered by Boomerang for the purchase of the Companies’ business and assets comprised of £36m in cash and adoption of £24m existing secured bank debt; total value of consideration being £60m.

Whilst the offer made by Boomerang was not sufficient to provide funds for the unsecured creditors of Entertainment Rights Plc it was significantly better than
the other offers received as a result of the marketing exercise conducted. The consideration was also considered to be substantially greater than the estimated realisable value achievable for the Group’s assets in a full insolvency of the Group, There are no third party creditors of Entertainment Rights Overseas Holdings Ltd.

Consequently, a sale and purchase agreement was negotiated with Boomerang and a sale of the Companies’ 100% shareholding in subsidiaries was completed shortly after the Companies were placed into Administration on 1 April 2009. The sale contract also included a provision whereby, should Boomerang dispose of all or any or the purchased shares within nine (9) months of the completion date they will be required to notify the Administrators in writing and will also be required to remit a percentage of the excess received for the shares to the Administrators.

As the Companies’ business and assets were sold upon appointment’ of Administrators, there’ are no operational matters to be addressed by the Administrators.

3.4 The Directors’ Statements of Affairs and Estimated Outcome for the Creditors

The Directors have submitted a Statement of Affairs of the Companies as at 1 April 2009, a copy of which is summarised at Appendix 2.

The Statement of Affairs is a summary of the Companies’ assets and liabilities at the date of the Administration, prior to the sale of the Companies’ assets.

The Statement of Affairs includes two distinct classes of creditors, as follows:

Secured creditors: the Companies’ secured creditor Is the Lender. The secured creditor holds a fixed and floating charge debenture security over the Companies which is paid In priority to other creditors.

Unsecured creditors: The unsecured creditors rank behind the secured creditors and only when the secured creditors are paid in full could the unsecured creditors reasonably expect to receive a dividend distribution, but there will be no further distribution given there are no further assets to realise.

The Administrators are not aware of any preferential creditors. Preferential creditors relate to employee wages arrears, holiday pay and certain pension contributions, and are in paid In priority to unsecured creditors out of net floating charge realisations.

Details of Entertainment Rights Plc’s creditors are included in Appendix 3.

3.5 Administrators’ Comments on the Directors Statement of Affairs

The Statement of Affairs Indicates that there will be no funds available for Entertainment Rights Plc’s unsecured creditors. As previously stated,

Entertainment Rights Overseas Holdings Ltd does not have any third party unsecured creditors,

Entertainment Rights Pie’s fixed charge assets comprise of its investments In subsidiaries, cash and tangible assets.

The directors have attributed no realisable value to the floating charge assets comprised of a trade debtor.

The trade debtor relates to an amount due from a former finance director. Whilst the Administrators are attempting to recover this amount, Entertainment Rights Plc had previously Instructed lawyers to pursue the amount due and had not been successful.


4.1 Administrators Fees

As there will be no funds available to the unsecured creditors fixing of the Administrators’ remuneration will be approved in accordance with Rule 21D6(SA) of the Rules, which is outlined below:

• Where the Administrators have made a statement under paragraph 52(1)(b), and in the absence of a creditors’ committee, the Administrators’ remuneration may be fixed by approval of each secured creditor.

Pursuant to Paragraph 52(1) (b) of Schedule B1 of the Act outlined above there is no requirement for unsecured creditors to pass a resolution in respect of the Joint Administrators’ remuneration.

The Administrators have sought approval to draw remuneration, on a time cost basis In respect of their costs from the Lender. The amount approved by the Lender will be deducted from the assets of Entertainment Rights Plc held back from distribution to the Lender for the satisfaction of costs of the Administration.

4.2 Administrators’ Expenses

The Administrators have not Incurred any direct expenses to date.


5.1 Directors’ reporting

The Administrators will be reviewing the conduct of all persons that were directors of the Companies (including those that, in the view of the Administrators, were shadow or de facto directors) in the three years preceding the date of administration.

The Administrators are required to submit reports to the Department of Business, Enterprise and Regulatory Reform within six months of the date of Administration, the content of which are confidential and cannot be disclosed to creditors.

• Statutory compliance Issues As part of their review the Administrators will typically include, among other matters, the following:

• Misfeasance or breach of duty

• Transactions at an undervalue

• Preferences

If creditors wish to draw any matters to the attention of the Administrators they should send written details to the Administrators at the address on the front of this report.

5.2 Exit Routes from Administration

Under the Enterprise Act 2002, all Administrations automatically come to an end after one year, unless either an extension is granted by the Court or by the consent of the creditors.

Where the Administrators have been appointed by the court they must apply to the Court to bring the Administration to an end when the purpose has been sufficiently achieved, or a creditors’ meeting requires them to do so, or they believe that the purpose cannot be achieved,

The Act and Rules provide a variety of options regarding the possible exit routes of a company from Administration, including a Company Voluntary Arrangement, Liquidation or Dissolution of the company.

It is the Joint Administrators’ recommendation and proposal, as detailed below, that the Administration be concluded and the relevant company be dissolved under Paragraph 84 of Schedule 61 of the Insolvency Act 1986.

5.3 Prescribed Part

The Prescribed Part (Section 176A of the Act and the Insolvency Act 1986 (Prescribed Part) Order2003) applies where there are floating charge realisations, net of costs, to be set aside for unsecured creditors and where the security was granted after 15 September 2003.

The Prescribed Part is calculated as 50% of the first £10,000 of floating charge realisations and 20% of the remainder, up to a total of £600,000.

In this particular instance, there are unlikely to be floating charge realisations available to the Administration and on this basis the Prescribed Part does not apply.

5.4 Connected Party Transactions

The Administrators are not aware of any connected party transactions which have not been carried out on an arm’s length basis. Should creditors have information regarding any such transactions they should forward details in writing to the Joint Administrators.

5.5 EC Regulations

As stated In the Administration Order in relation to the Company Council Regulation (EU) No 1346/2000 applies and these are the main proceedings as defined in Article 3(1) of that Regulation


In accordance with paragraph 49 of Schedule B1 of the Act the Joint Administrators make the following proposals for achieving the purpose of the Administration:

Formal Proposals — the Joint Administrators propose that:

1. they continue with their enquiries into the conduct of the directors of the companies and continue to assist any regulatory authorities with their Investigations Into the affairs of the Companies (to the extent required by law Or other regulatory rules); and

2. they be authorised to agree the claims of the secured and preferential creditors (should any exist) unless the joint Administrators conclude, in their reasonable opinion, that a company will have no assets available for distribution to that class of creditor; and

3. if creditors of the Companies so determine, at a meeting of creditors, appoint a creditors’ committee to assist the Joint Administrators (such committee must comprise of between 3 and 5 creditors); and

4. in the absence of a creditors’ committee, the secured and preferential creditors (to the extent they exist) of the Companies shall be asked to agree that the Joint Administrators be discharged from liability per Paragraph 98 of Schedule 31 of the Act, Immediately upon the Joint Administrators’ filing their final report to creditors; and

5. if the Joint Administrators believe it to be appropriate for the Companies, they exit the Administration by way of dissolving either or both Companies under Paragraph 84 of Schedule B1 of the Insolvency Act 1986

Joint Administrators
N G Edwards & C M Siddle
Deloitte LLP
66 Shoe Lane
EC4A 35Q

Appendix 1

Entertainment Rights Plc


Company name Entertainment Rights Plc
Company number 02402919
Date of incorporation 11 July 1989

Registered office Deloitte LLP
Hill House
1 Little New Street

Business address Colet Court
100 Hammersmith Road
W6 7JP

Ordinary issued and called up share capital 733,302,563 ordinary shares at 5p Each

Directors Edward Knighton
Deborah Dugan
Richard Brooke
Craig Hemmings
Sir Robin Miller

Company secretary Paul Ashworth

Bankers Bank of Scotland Plc

Auditors KPMG LLP

Appendix 2

Entertainment Rights Overseas Holdings Ltd


Company name Entertainment Rights Overseas Holdings Ltd

Company number 06457718
Date of Incorporation 19 December 2007

Registered office Deloltte LLP
Hill House
1 Little New Street

Business address Colet Court
100 Hammersmith Road
W6 7JP

Ordinary issued and called up share capital 255,676,234 £1 ordinary shares

Directors Edward Knighton
Paul Ashworth

Company secretary Paul Ashworth

Bankers Bank of Scotland plc

Auditors n/a

Thursday, 2 April 2009

The Guardian

Boomerang Media buys Postman Pat owner Entertainment Rights
Basil Brush and He-Man licensing firm's UK and US operations sold off after going into administration

Mark Sweney The Guardian, Wednesday 1 April 2009 13.51 BST

Postman Pat: one of Entertainment Rights' properties.

Entertainment Rights, the company that owns the licensing rights to children's characters such as Postman Pat and Basil Brush, has gone into administration with its UK and US operations sold to Boomerang Media.

The deal with Boomerang Media, which is backed by a US private equity firm managed by the co-founders of Classic Media, which Entertainment Rights acquired in 2006, will save the jobs of 90 staff working in the UK and US.
Entertainment Rights, which has today suspended its shares and will have its stock market listing cancelled from tomorrow, said last month that none of the bidders for the business were willing to buy it as a going concern.

"The board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the company's debt, raising new equity and a sale of all or parts of the business," the company said today. "Despite the financial support of the group's lender through this period, the group has been unable to achieve a solvent restructuring of the company."
Boomerang Media, which is backed by the Chicago-based private equity firm GTCR, has acquired the US and UK operations of Entertainment Rights and both will continue to trade as normal. The sale will not result in any return of money to Entertainment Rights shareholders. The company has debts of more than £130m.
"The sale secures the ongoing activities of the group's trading subsidiaries, allowing the former businesses of Entertainment Rights to survive under new ownership," said the company. "The new owners have indicated their intention to invest in the business to further develop its strong portfolio of intellectual property."
Boomerang Media owner GTCR is jointly managed by Classic Media co-founders Eric Ellenbogen and John Engelman.
Entertainment Rights' acquisition of Classic Media, which owns the rights to Lassie and The Lone Ranger, for £107m in 2006, helped create the massive debt which has now brought the company to its knees.
Other rumoured bidders had included private equity house Apax, which already owns rival children's character group Hit Entertainment, and the investment vehicle of Haim Saban, the entrepreneur behind Power Rangers.

The Times

From The Times
April 2, 2009
Entertainment Rights falls and Postman Pat goes West
David Wighton: Business Editor's commentary

British Steel, Pilkington, Jaguar . . . so many of our prized assets have already fallen into foreign hands that losing another hardly seems to matter. Still, there was something profoundly shocking about the news that we have lost Basil Brush and Postman Pat. The custodian of these national treasures, a company called Entertainment Rights, collapsed yesterday into the arms of the New York-based Boomerang Media.
During the good times, Entertainment Rights was too preoccupied in chasing expensive deals and buying dated characters — such as Rupert Bear or Lassie — hoping to revamp them, rather than developing new hits. Even the evergreen Pat was forced to leave sleepy Greendale for the big city.
Many of us have great affection for Basil Brush, but shareholders should perhaps have questioned the resilience of a character with the catchline “Boom, boom!”


Postman Pat and Basil Brush cost HBOS £75m as Entertainment Rights collapses
Chris Tryhorn
The Guardian, Thursday 2 April 2009
Article history

Postman Pat: part of the stable of Entertainment Rights characters. Photograph: BBC
The collapse of the company behind Postman Pat and Basil Brush is believed to have cost HBOS more than £75m.
The bank, which is now part of the part-nationalised Lloyds Banking Group, has had to write off at least half of its loans to the media group Entertainment Rights, banking sources said. Entertainment Rights' debts had swollen to as much as £150m, forcing it to go into administration yesterday and sell all of its assets to a US group.
The company applied to have its shares suspended and is expected to lose its listing on the London stock exchange today.
Entertainment Rights had failed to find a buyer for its whole business and finally called in administrators at Deloitte when it gave up hope of securing a "solvent restructuring". The company's stable of children's characters, which also includes Rupert Bear and He-Man and the Masters of the Universe, have been bought by New York-based Boomerang Media, a company backed by the Chicago-based private equity group GTCR and managed by Eric Ellenbogen and John Engelman. The Americans will now take back ownership of some of their old properties such as Lassie and Casper the Friendly Ghost, which they sold to Entertainment Rights as part of the $210m (£107m at the time) disposal of their previous company, Classic Media, in December 2006, a deal that played a major part in Entertainment Rights' later debt problems.
The value of yesterday's sale was not disclosed, but it is believed to have fallen a long way short of recovering all of Entertainment Rights' debts. The deal has left investors, who had already seen the value of their shares almost wiped out, likely to receive nothing. However, it was good news for the group's 90 employees in London, New York and Nashville, who will transfer to the new company. Entertainment Rights' demise closes a turbulent period in which it issued a series of profit warnings, saw its chief executive leave after just nine months and axed a third of its staff. "The board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the company's debt, raising new equity and a sale of all or parts of the business," said Nick Edwards, a Deloitte partner and joint administrator. "Despite the financial support of the group's lender through this period, the group has been unable to achieve a solvent restructuring."