Prime Focus has completed a pre-pack administration deal to buy some of the assets of its struggling commercials division.
Immediately after Prime Focus Broadcast and Commercials Limited (PFBC) was placed in to administration, Prime Focus Broadcast Limited (PFB) agreed a deal to acquire some of its contracts, business and assets for £385,000.
An undisclosed number of employees will now transfer from PFBC to PFB.
Prime Focus will continue to provide some services for the commercials sector, such as world versioning, but it is not taking on all of the commercials operation.
The company said the administration process would reduce its overall costs by £1m per year.
PFBC’s net liabilities had grown from £300,000 in 2012 to £1.3m by the end of January.
Prime Focus said its broadcast business “continues to perform well”, and is expected to show year-on-year growth.
See this week’s issue of Broadcast for more