One of the two bidders for the insolvent ODS Business Services, Dutch replicator MediaMotion, is no longer in the race. On Monday, the company’s board of directors filed for bankruptcy and an administrator was appointed by the court on Tuesday. The bankruptcy procedure relates to the group’s Uden-based production facilities, MediaMotion Manufacturing B.V.

The news of the start of the bankruptcy proceedings came as a shock to the 700 employees – 400 on fixed contract and 300 on temporary assignment. Neither the labour union nor the workers were notified of the severe financial situation. "Nobody saw this coming, it's a cold shower," says labour union leader Frans ten Broeke. "We knew that the business was not really flourishing." It is also a blow to the region. MediaMotion is a major employer in the town of Uden.

MediaMotion Manufacturing is reported to have debts of €33 million, of which €26 million are owed to creditors and €1 million to the tax office. The company counted on inheriting the Universal contract which ODS had secured. However, the Hollywood studios did not proceed with the Dutch replicator. Two "serious" candidates for a takeover have made themselves known to the administrator.

MediaMotion's board of directors remains "very positive" about a return to operations "with a significant proportion of employees retained." The company sought temporary protection from creditors to adjust to a marketplace where digital music downloading has affected the CD and DVD business which the company believes is "still strong," says the company.

MediaMotion was founded in 2003 by the merger of former RSB (Record Service Benelux), Cinram (former Polygram Manufacturing) and Metatec. In 2004, MediaMotion took over EMI Manufacturing Europe and became the exclusive producer and distributor for EMI Records (UK & Mainland Europe). A year later kdg Netherlands was also acquired and integrated into the MediaMotion Group, followed by Care4Data in 2005. 2006 saw further acquisitions for the Group in the UK (Workflow UK Limited) and in France (Digital Valley SA).

MediaMotion has offices and facilities in the UK, France, Germany, The Netherlands, Belgium and Switzerland, growing into one of Europe's largest media service companies.

Story filed 27.02.08