Canada’s Corus Entertainment (CJR.B) has announced that it is putting itself up for sale as the company known for producing children’s cartoons struggles with $1 billion of debt.
Toronto-based Corus says it has hired U.S. investment bank Jefferies Financial Group (JEF) to explore a sale of its business.
The move to find a buyer comes four months after Corus warned that it might file for bankruptcy, saying that its debt issues “may cast significant doubt about the company’s ability to continue as a going concern.”
The company has about $1 billion of debt and recently restructured the terms of its loans with several creditors as it tries to stay afloat.
Corus is known for producing children’s cartoon television series such as “Babar” and “Johnny Test.”
The company also owns local TV and radio stations across Canada and is majority controlled by the Shaw family of Alberta.
Corus was dealt a blow earlier this year when it lost some programming and channels owned by Warner Bros. Discovery (WBD), including popular reality series such as “Property Brothers” and “Love It or List It.”
Some analysts have warned that Corus shareholders might be left with nothing after a restructuring or sale of the company.
The stock of Corus has declined 85% so far this year and trades at only $0.12 per share, making it a penny stock. Since going public in 1999, Corus’ stock has declined 99%.
