Lionsgate's Close Call: A Tax Error Almost Sank eOne UK
A Close Call for Entertainment One UK Limited
Lionsgate, a major player in the entertainment industry, recently found itself in a tight spot. The company managed to avoid a serious problem with its UK subsidiary, Entertainment One UK Limited. This branch of the company brings in over 176 million pounds in revenue. The issue? A tax bill that went unpaid.
The UK tax authority, known as HMRC, was ready to take drastic action. They filed a "winding-up petition", a legal move to force a company into liquidation. This usually happens when a creditor wants to recover a debt. But here's the twist: it seems like a simple clerical error caused the whole mess.
A Quick Resolution
Things got interesting when someone noticed the mistake. After Lionsgate was informed about the petition, they quickly settled the unpaid bill. Now, HMRC is ready to drop the petition. What's more, there's a chance that eOne UK might actually be owed a refund.
The Numbers Behind the Story
In the year leading up to December 26, 2023, eOne UK reported sales of 176 million pounds. But they also had pre-tax losses of nearly 23.5 million pounds. That's a big gap between revenue and profit.
The Acquisition and Its Exclusions
Lionsgate acquired eOne from Hasbro in 2023, but not everything was included in the deal. The popular Peppa Pig brand stayed with Hasbro. Entertainment One UK Limited was split up before the sale, with the family division, which includes Peppa Pig, going to Hasbro Consumer Product Licensing Limited.
Entertainment One Unscripted TV UK
Entertainment One Unscripted TV UK is another part of the company. They produce shows like:
- "Married to the Game" on Amazon Prime Video
- "Adam Richman Eats Football" on Discovery+
