VeggieTales makers file for bankruptcy

Christian Century, Sept 20, 2003

Big Idea Productions, makers of the best-selling VeggieTales video series, filed for Chapter 11 bankruptcy this month as part of a deal to sell the financially troubled company.

The company agreed to sell its assets, including copyrights on Bob the Tomato and Larry the Cucumber and other VeggieTales characters, to Classic Media LLC, which owns or manages media properties such as "Rocky and Bullwinkle," "Lassie," "The Lone Ranger" and "Rudolph the Red-Nosed Reindeer."

Despite Big Idea's continued popularity--eight of the top ten videos in the Christian retail market are from Big Idea, including the recently released The Ballad of Little Joe--the company has had cash flow problems in recent years. Last November, following the release of the motion picture Jonah: A VeggieTales Movie, which grossed more than $24 million at the box office, Big Idea laid off 30 employees. Additional layoffs cut the company's staff from a high of 200 part- and full-time employees to 44 when it filed September 2 for bankruptcy.

"To call the last year difficult is an understatement," said Big Idea founder and CEO Phil Vischer in a statement. "In the midst of Veggie Tales' success, we made several key strategic errors that led us to this point. Due to their great enthusiasm for both our business and our ministry, I believe Classic Media is a wonderful partner to help guide Big Idea back to financial health."

Kris Fuhr, a spokesperson for Big Idea, said the company intends to continue making VeggieTales videos, with an Easter special due for release next February, followed by videos in May and September. Plans for a second VeggieTales film, announced last fall, are now on hold, Fuhr said. "There are projects that are ready to go," she said, "but they have to have the appropriate business model" before proceeding.

The Jonah film, which cost am estimated $10 million to $20 million to produce, was self-financed by Big Idea. The company would take on "financing partners for our future film projects," said chief operating officer Terry Pefanis, in a statement. And the company will now focus on story concepts and preproduction, with the animation and production outsourced, "which is what the rest of the industry is doing," said Fuhr.--RNS