Black Letter Day For Postman Pat Company

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The company which owns children's favourites Postman Pat, He-Man and Rupert the Bear has gone into administration.

New York-based Boomerang Media has bought Entertainment Rights from administrators Deloitte.

The company had been struggling with heavy borrowings, which stood at £125m at the end of last August.

It axed a third of its 150 staff in December - and was among a number of firms which have been hit by the collapse of high street chain Woolworths.

Deloitte partner Nick Edwards said: "The sale secures the ongoing activities of the group's trading subsidiaries, allowing the former businesses of Entertainment Rights to survive under new ownership."

Boomerang Media is a company set up last year specifically to buy intellectual property.

The firm is backed by private equity firm GTCR and run by industry veterans Eric Ellenbogen and John Engelman - who sold their Classic Media business to Entertainment Rights for £106.9m in 2007.

Entertainment Rights chief executive Deborah Dugan said the company was "poised for its next phase of growth" following the sale.

The move is Boomerang's first major deal and it plans to invest £139m to build up a powerhouse of well-known brands.