Goldhil inventory to be liquidated
Debt forces sale despite profitable 2007
By Susanne Ault -- Video Business, 6/4/2008
JUNE 4 | Despite new ownership, financially strapped Goldhil Entertainment is facing liquidation, as its creditor will hold a foreclosure auction of Goldhil's assets in June.
James Rena, who purchased the indie distributor in late 2006, said Goldhil did enjoy a profitable year in 2007. But the company’s debt, which Rena inherited with his acquisition, is significant enough for senior secured creditor Avalon Capital Advisors LLC to force the asset auction.
Goldhil’s previous management team included Paul Culberg, Mike Corrigan and Mark Curcio, some of which held varying ownership stakes.
On June 17 at Goldhil's San Francisco headquarters, all of the company's DVD masters, trademarks, copyrights and other assets related to its entertainment business will be up for sale. Goldhil has 1,100 titles in its library, with heavy concentration in educational and fitness titles.
However, Rena hopes that his efforts to rescue Goldhil will convince buyers to acquire the company with the intention of keeping it in operation. Rena was previously head of educational label Cerebellum, which Goldhil later acquired and folded into its company.
“We have done a huge amount to create a very efficient operating business, but the debt burden on the company is massive,” said Rena. “We have built a business that is cash flow positive. We had a good, profitable year in 2007. I hope [buyers] see more value to the ongoing business than not.”
Over the last several months, Rena has pared down Goldhil’s employees to 20, representing one-third of the company’s headcount under former management. Besides Rena, Goldhil executives include chief operating officer Christopher Goldsmith and independent sales rep Bill Perrault.
Goldhil has lost distribution rights to key properties, including its signature Little House On the Prairie series.
But Rena noted that regardless of the impending auction, Tori Spelling reality TV series Tori & Dean: Inn Love and documentary Summer Camp will be released this year. Rena did not specify street dates.
Rena did say that Goldhil’s retail partners should not anticipate any disruption in receiving product while the auction is taking place.
“The key is that there will be no interruption to customers in service,” Rena said.
