UK's Creature Shop faces closure over taxes

[Drtooth]

This is scary news. Even if it is a rumor, this is pretty much scary stuff. I mean, since the Hensons soul-lessly sold their company to EmTv in the 90's, then after getting them back (after splitting up the Muppets , SS, and Fraggles) sold it to Disney anyway (and I was so looking forward to the Classic Media/SW joint venture) I don't know wether to believe in this out of fear or to cautiously hope it's a false rumor.

 

[MuppetQuilter]

The Creature Shop is NOT closing

We've checked with reliable sources and this is inaccurate. The Creature Shop is not closing.

The British film industry is not as profitable as it once was due to changes in UK tax laws and that combined with the exchange rate is causing many American productions to look for other, more affordable, locales. The Jim Henson Company is considering all its options re: the London Creature Shop. Because of UK redundancy laws (which have to do with employment-- any of you Brits know your laws well? Luke?) companies are required to let employees know if they are considering making changes. There has been NO decision to close the London Shop. The powers that be at Henson are looking into options and have made no decisions as of yet.

What we do know is The Creature Shop remains an important part of the JHC and their work will continue.

 

[Phillip]

Here's some more information on what all of this means...

http://www.muppetcentral.com/news/2005/060305.shtml

 

[MWoO]

I see. So it is being considered. This is truly sad then. At least it is not really their choice. It is being forced because the US economy is so awful.

Is the world ending? Please, someone let me know. I just want to be prepared.

 

[Punch'n'Judy]

Creature Shop

There is an article in today's (Saturday June 4th) Times newspaper (UK) regarding the closure of the UK Creatrue Shop.

James

 

[Muppetsdownunder]

It would be sad if it did close because it has a bit of history, Jim Henson started that workshop himself. Everything is so darn expensive in England. If it does close just blame mr Blair!

 

[mattyboy]

I agree - Tony Blair has ruined this country more than Maggie Thatcher!!!

 

[Kimp the Shrimp]

To: petenehra@juno.com :

We appreciate your interest in The Jim Henson Company. However, we do not respond to speculation and rumors about the company or any of our productions. News, when it is fact - and when it can be made public, will be posted on our web site www.henson.com.

Regards . . . The Jim Henson Company

 

[Kimp the Shrimp]

To: petenehra@juno.com :

We appreciate your interest in The Jim Henson Company. However, we do not respond to speculation and rumors about the company or any of our productions. News, when it is fact - and when it can be made public, will be posted on our web site www.henson.com.

Regards . . . The Jim Henson Company

 

[ravagefrackle]

here is the article in question, i know someone started a thread about this somewhere, and i didnt post , because all though i had geard the rumors thru the grape vine i didnt want to speculate , but it does seem to to be true,
a real shame they did some fantastic work over in London,

June 04, 2005

UK home of the Muppets faces closure over tax
By Nic Hopkins and Jack Malvern
TAX uncertainties and the falling dollar are threatening the closure of Jim Henson’s Creature Shop, the fabled special effects company that created characters for films including The Flintstones, Babe the recent Hitchiker’s Guide to the Galaxy and episodes of The Muppets.

The Jim Henson Company, which owns Creature Shop, told The Times yesterday that it was considering shutting the iconic studio because the falling dollar and uncertainty over tax breaks for films shot in the UK allowed rivals to undercut the company.

All staff at the Creature Shop were told this week that they faced being made redundant. The company has 23 permanent staff and dozens more freelance workers.

“It is much more about the tax incentives and lack thereof for doing work in London, as well as the miserable dollar right now,” said Peter Schuber, president of the Jim Henson Co. “Because of those two external elements, which are out of our control, we are going to look at a whole range of alternatives including possibly shutting the Creature Shop.”

Mr Schuber said that it was “premature to say everything is closing” but admitted that “everything is under review”.

The Creature Shop, housed in unremarkable offices along London’s Regent’s Canal, opened in London 26 years ago when Jim Henson arrived in London to make The Dark Crystal, set in an all-puppet fantasy world.

Soon afterwards characters for the film Labyrinth, starring David Bowie and Jennifer Connelly, were made there. The shop has also made characters such as the animatronic pig in Babe and Marvin the Paranoid Android in Hitchiker’s Guide.

Mr Schuber said that regardless of the future of the Creature Shop the Henson Company, which is based in Los Angeles, would continue to carry out work in the UK. “But it is cheaper for others to do it elsewhere, therefore they don’t come to the UK to get the kind of work which the Creature Shop provides,” he said.

The uncertain future of Britain’s entire film industry was triggered by a revision of Section 48 tax benefits for films with budgets of more than £15 million, which the Government found was being abused by some producers.

The situation has been worsened by the weakness of the dollar against the pound, which has meant that American film producers are finding it as much as 30 per cent more expensive to make movies at studios such as Pinewood than it was 18 months ago.

Industry executives expect a huge drop in film production because of the uncertainty. Pinewood suffered a hit this year when Paramount indefinitely postponed shooting its $120 million (£66 million) feature The Watchmen.

Concerns remain over whether the forthcoming Bond film, Casino Royale, and Harry Potter and The Order of the Phoenix will be shot in the studios. The producers of both are considering going to cheaper Eastern European cities, such as Prague and Budapest.

The Film Council, which represents the industry, is in talks with the Treasury to work out a framework for tax relief. It is expected within weeks to set down a timetable for rolling out a new tax regime that will allow for a fresh round of investment from Hollywood studios.

CURTAINS FOR CREATURE SHOP?

1958: The Jim Henson Company founded and incorporated as Muppets, Inc




1969: Sesame Street, featuring Kermit the Frog, first appears on television


1979: Jim Henson establishes Creature Shop in Camden to work on the film The Dark Crystal


1990: Henson dies of pneumonia aged 53


2000: The Henson Company sold to Germany’s EM.TV & Merchandising for $680m


2003: Jim Henson’s five children buy back the company from cash-strapped EM.TV for $89m. The Sesame Street characters were sold by the Germans in 2000 to Sesame Workshop, although Henson retains rights to Kermit the Frog, Miss Piggy and Fozzie Bear


2004: The Henson family lays out plans to refocus and relaunch the company

June 2005: Creature Shop in London set to close and all operations head to LA