Staffers at Telemation, an Ontario production and post facility owned by Home Shopping Network corporate parent HSN Inc., have been told the facility will shut down at the end of this month.
“It’s closing down. People were told to leave by the 31st,” said Terry Dwyer, an audio editor who has been a regular freelancer at Telemation for the past three years.
The facility’s last TV project was “How’d They Do That?” for Warner Bros. The bulk of Telemation’s client base consists of TV and commercial producers.
Despite sources close to Telemation confirming the closing, a New York-based spokeswoman for HSN Inc. would only say, “It’s currently operational and still fully staffed.”
Observers estimate that about 10 full-time employees will be affected, and about half a dozen regular freelancers.
HSN had earlier closed a Denver facility, also called Telemation.
Sources told Daily Variety the Ontario closure isn’t surprising, since such facilities operate on a low profit margin. Furthermore, the post business is capital-intensive and highly competitive.
“It’s no big mystery: They weighed the financial benefits, and decided they don’t have time to grow a business that makes less than $1 million a year,” speculated an insider.
Telemation sources said HSN has expressed interest in building a production facility near its corporate offices in Santa Monica.