LTW.MEDIA has learned that CHF Media Group is to close CFH Entertainment, the group’s animation arm which is behind animated series such as Daisy & Ollie and Pip Ahoy!
The closure is a result of changes to HMRC ruling. CHF Entertainment provided animation production services to companies which were funded through the CHF Media Fund. Previously, these investee companies were permitted to outsource their animation production, as is the industry standard, but the recent HMRC rule changes now requires investee companies to produce their own content in-house.
A source close to the matter told LTW.MEDIA that the result effectively makes CHF Entertainment redundant.
Drespite CHF Entertainment's dissolution, LTW.MEDIA has been told that production on 52 brand-new episodes of Daisy & Ollie, which counts comedian Jason Manford as Executive Producer and voice star, will continue as planned. More details will be shared in due course.
In a statement sent to LTW.MEDIA, Adrian Wilkins, CEO of CHF Media Group, says: “Whilst the HMRC rule changes have meant that CHF Entertainment will close, the investee companies funded via the CHF Media fund will not be affected by this decision.
“The investee companies are independent businesses in their own right and will continue to grow and develop into established brands, which is the reason why the CHF Media Group and investors via the CHF Media Fund supported them in the first place.
“For example, the investee company which owns the rights to the show Daisy & Ollie is scheduled to begin production on series 3 and 4 next month, building on the success to date of the brand.”
With the closure of CHF Entertainment, CHF Media Group intends to pivot and place greater emphasis on licensing and merchandising its content, rather than offering production services. It will also continue to offer fundraising and licensing services to third parties.