Ithica Films - Case Update

Iain Townsend and Martyn Pullin of FRP Advisory, the joint administrators of Middlesborough-based film company Ithica Films, have revealed how an issue with premises leased by the company ultimately led to its demise.

Ithica was incorporated in March 2014 to operate a film production agency, trading from leased premises at Marsh Street, Middlesborough, and more recently from rented premises at Fusion Hive, Stockton on Tees. The company’s client pool spans the heavy-duty industry, financial services sector and alcoholic beverage market.

In 2019, Ithica relocated to larger premises at Marsh Street to prepare for anticipated growth. These plans were negatively impacted by the COVID-19 pandemic, which impeded the company’s growth and caused it to secure a CBILS loan and make use of the Job Retention Scheme to retain its staff.

Despite these efforts, the company continued to face financial strain, operating from only 25% of the expanded space while bearing the full burden of associated overheads. Ithica was able to secure a new tenant for the Marsh Street premises, and its landlord agreed to grant a lease pending the incoming tenant securing local authority approval to a change of use for the premises. Despite an 8-month process, the change of use was not granted, leaving the company to pay the lease on the Marsh Street premises, which proved economically unsustainable.

The joint administrators were appointed on 12 March and completed a pre-pack sale to Ithica Film and Media, an entity connected to the company’s current director and its head of finance and operations.

The administrators have been assisted by Knights and Endeavour (legal) and Sanderson Weatherall (agents). Their proposals be accessed HERE.