Archive for June, 2011

12
Jun
11

Post production company Pepper finally closes?

After a break in recent ‘bad news’ stories, it was with surprise that Soho learnt on Friday of, what seems to be, just maybe, the final closure of post production company Pepper as it has been put in to liquidation by Future Film Group.

http://www.pepperpost.com/

Its terrible for the staff, who may already have endured rough times with the company before, find themselves again in an all to familiar state.  Knowing some of the people there myself, they were shocked that out of nowhere the doors were locked and they were out, for those dry hiring rooms it must have been a scary arrival at Greek St on Friday 10th June.

Demand most of the year outweighs supply in our industry, and Future have looked at the business and made the right decision in this regard.  When companies continually go in to administration (see http://secure.duedil.com/business#/b/pepper%20post) and on occasion leave their creditors with large outstanding debts it not only hits its creditors and freelancers (if they are left unpaid), but when companies do this, they should, in my opinion, close, and stay closed unless major restructuring and redundancies take place.  By conducting and disposing of debts and liabilities in this way it only increases the cost of credit to other production/post/rental companies as the market becomes more high risk for lenders, which in turn leads to smaller profit margins for the rest of us trying to run a business.  The argument of course is saving jobs, but very long-term I’m not sure it results in this as the industry as a whole suffers through excessive undercutting to increase turnover rather than profit.

Hopefully with demand in TV drama increasing, perhaps some of the other international names that have continued to run their post production services at a loss will now start to  charge proper rates for their services, although their clients may find that a bit of a shock!

I hope all the team at Pepper, who included some talented and friendly people, find work quickly, and that Future Films Group continue their success in film finance, an area which has also struggled in recent years in this recession.

Thomas Urbye

MD

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