As part of its announced restructuring process (Screen Daily June 19), troubled Kinowelt Medien has parted company with part of its merchandising operations.
Brameier Fanworld, which operated a merchandising franchise chain with 113 Fanworld shops in city centre locations throughout Germany and in which Kinowelt had a 65% majority stake, has petitioned for insolvency.
The decision was taken after Kinowelt's executive board decided not to continue funding the loss-making concern and a subsequent search for a partner to take over its shareholding failed.
In an official statement, Kinowelt stressed that the "commercially successful" 50% subsidiary MR Kinowelt Merchandising GmbH was not affected and would continue operating as before.
Kinowelt's executive board is currently drafting a comprehensive restructuring of the Group's operations. The process is expected to be completed by the end of July.