Facilities house Molinare could face closure after its owner Television Corporation admitted losses at the subsidiary had increased "significantly" over the last two months forcing it to issue a profits warning, writes Leigh Holmwood.
The subsidiary's losses are expected to reach£1m for the first six months of 2003. TV Corp blamed the continuing down-turn in the post-production sector and said it had taken steps to try and turn the business round with a new managing director, Mark Foligno, being brought in from Sony Broadcast.
He is expected to be given around six months to make Molinare work with analysts predicting it could be closed by the end of the year if he fails.
TV Corp's two production businesses, Mentorn and Sunset and Vine, also experienced a "slow start" to the year, but prospects for the rest of the year were better, the company said. Mentorn has recently scooped a series of high profile orders including a new reality show for Fox in the US.
Sunset and Vine is currently waiting on the signing off of a major new advertiser funded programme.
The firm added full year profits were expected to be "substantially below" current market expectations.