Jadooworks, the high-profile Bangalore-based animation company, seems to be scripting a tragic story for itself as the company is learnt to be nearing bankruptcy for lack of fresh investments and project orders.
Sources said the management has given clear indications of a reduction in salary to its 250-odd employees, while few senior officials have already put in papers.
The much-publicised Krishna project has been put of hold for ‘technical’ reasons while the company’s ongoing project for Disney Play House, US, got over last month.
“We are visiting Bangalore towards the end of the month for conducting interviews to absorb skilled manpower from Jadooworks,’’ said a top official in an animation firm.
However, Rajiv Marwah, chief executive officer of Jadooworks, said the company has not served notices to any of its employees while denying that the company’s finances are in a bad shape. “We are not obliged to disclose details of our projects since it’s a private limited company,” Mr Marwah said.
An employee with Jadooworks, on conditions of anonymity, disclosed that the company is in a bad phase. “We do not have any projects on hand but there is no reason to believe that the company is shutting down,’’ he said.
Magic Flute Productions, promoted by Jadooworks in joint venture with Iskcon and set up for making the ‘Krishna’ serial has not taken off yet and the project is on hold, confided the company executive.
Company officials had earlier admitted that many Indian writers’ scripts were rejected by foreign TV networks, following which the company roped in Emmy award winner Jeffrey Scott.
Jadooworks, set up in mid-2000, initially had investments from UK-based investors under the company Asia Media Investment BV, when personalities like Farrukh Dhondy and Shekhar Kapoor re-launched the company which was earlier known as Geek Features.
Later, the company received $3 million worth first-round funding as private equity. Jadooworks managed to bag prestigious contracts which included a $2.6 million animation contract from US-based Wild Brain Productions.
Sources said the company management has been trying for a sell-off or attract fresh funding by venture capitalists for some time though no deal has not yet materialised. They added that one of the big five accounting firms which audit Jadooworks had raised few observations on the fiscal condition of the company, though details of the same could not be verified with company executives.