500 employees were informed about the financial issue via a letter pinned on the front door of the studio
Thomas the Tank Engine has literally hit the brakes.
Arc Productions, the studio behind the children’s program Thomas & Friends, has filed for bankruptcy protection in Toronto.
On Tuesday, a letter from Arc Productions CEO Tom Murray was pasted on the front door of the studio informing the company’s 500 employees about financial problems.
“Arc is experiencing significant financial difficulties and a liquidity crisis,” the letter read. “Despite the very best efforts of management to find a solution to this financial emergency, we have not been able to resolve this matter with our lender.”
Adding, “I am so sorry that, in spite of all of the efforts, I have been unable to resolve this crisis and apologize for that failure. – Tom.”
Deloitte Canada is to assist as the court-appointed interim receiver on Thursday.
Arc Productions helped create other series such as LEGO Marvel Super Heroes: Avengers Reassembled!, Disney Channel’s Elena of Avalor, and the upcoming Netflix animated series Tarzan and Jane, set for a Fall 2016 release.