The parent company of children’s television programme RTE said it was liquidating its operations after failing to reach an agreement with the company’s creditors, which included creditors of other brands including children’s cookery and children’s toys brands.
The company said it had signed a deal with creditors including those of childrens appliance brand Gwynedd, and that the agreement had not yet been finalised.
“This news will result in a loss of around £3 million to the company.
In addition to this, the company has also experienced a significant impairment charge, resulting in a further loss to the financial position of the company,” it said in a statement.
The liquidation will see the company go into liquid state and be dissolved as a company, with all assets in liquidation, according to the statement.
Gwynedd said in the statement that it “deeply regrets the impact this has had on the business”.
“We have been working closely with the relevant parties and remain committed to supporting RTE through this difficult time,” it added.
Gwenedd’s parent company, TV Licensing, has been the target of an investigation by the US Justice Department, which is examining whether TV Licenses was illegally paying TV producers to air RTE content.RTE was established in 1989 and became one of the biggest TV brands in the UK.
Its flagship programmes include My Little Pony and The Great British Bake Off, and have also included a number of children and family-friendly shows, including The Mummy and The Little Mermaid.
The UK government has been working on plans to make children’s entertainment more appealing to young audiences, including a new RTE channel and an online version.
The US Justice department is looking into the company over the payments it made to TV Licences and its failure to pay royalties.
It is not the first time the company had been accused of making inappropriate payments to its UK television licensees.
Last year, the US Department of Justice investigated whether RTE had breached the US antitrust laws, following allegations from US lawyers that the company paid TV Licence to air content it did not own.
In October, the broadcaster was fined $2.2m (£1.9m) by the European Commission, and RTE’s parent, Gwyndddd, agreed to pay $2m in damages to the EU.