Barrandov televizní studio (BTS), the operator of TV Barrandov, is terminating its reorganization process and will enter bankruptcy proceedings this week. The decision was announced by the television's owner, Jan Čermák, who took over the indebted station from Jaromír Soukup two years ago. According to Čermák, continued operation would require subsidies amounting to tens of millions of crowns monthly, which he deemed economically unsustainable.
The change in legal status will bring a fundamental transformation of broadcasting. The group, which currently operates three channels – the main Barrandov station, Kino Barrandov, and Barrandov Krimi – plans to reduce broadcasting to just one national channel. This channel would operate in a trial mode, and its viability would then be evaluated. Čermák's S-24 group acquired the license for this main channel last year in a separate proceeding. The insolvency administrator will decide the fate of the remaining assets.
"We quickly found ourselves in a situation where it would be necessary to subsidize operations long-term by tens of millions of crowns monthly, which no longer makes economic sense. The project itself is not ending; only its operational and service provision is changing," stated Jan Čermák.
The decision to file for bankruptcy came despite previous attempts at stabilization. According to management, costs were successfully reduced, and last autumn, the project was approaching operational profit. However, external factors complicated the situation, particularly a drop in the advertising market, rising energy prices, and the enforcement of a tax claim by the financial office for 30 million crowns. The television owner estimated his personal losses in the project to date at approximately 100 million crowns.
While the television part of the holding is headed for bankruptcy with the aim of monetizing assets to satisfy creditors, the publishing house Empresa Media is set to continue its operations. According to Čermák, titles such as Týden, Sedmička, and Instinkt have proven viable. The original debts of the television company before the start of reorganization reached one billion crowns.
"While the goal in reorganization was to maintain the business, in bankruptcy, the goal is to monetize assets. Once the court decides on the declaration of bankruptcy, the administrator will have full control," explained Andrea Geyer, the television's general director.