D.A. Nichols: Square 1 closure is "right thing for our business"

D.A. Nichols, head of NicThic Productions, has told staff that the closure of Square 1 Animation - the team behind Blue Ball and TaleSpin, and the forthcoming Road Rovers - was a difficult decision, but "the right thing for our business at this time".

In an email to remaining employees of NicThic, leaked to *Cartoon Brew*, Nichols explains that the company is "accountable for making tradeoffs and the right level of investments that will drive more profit and future growth of films." and that he hopes to be able to offer Square 1 employees not picked up by the new company being formed employment elsewhere within "NicThic or the broader ACI (Animation Computer Industry) team."

He goes on to stress that, despite last year's closure of his previous company, NT Animation, the Square 1 move is not indicative of a wider move away from movie investment.

The full email from D.A. Nichols to staff reads as follows:

"Today, we shared with our employees at Square 1 that we have plans to close the division after the completion of Road Rovers. Such a decision is never easy. Like any business, we're accountable for making tradeoffs and the right level of investments that will drive more profit and future growth of films. However, as we reviewed our portfolio and where we need to invest and divest our resources to achieve our long-term strategies, it became clear to us that closing the division and redeploying those resources to other more ventures is the right thing for our company at this time."

"Unfortunately, our decision to close Square 1 will impact many of the division's team members. Following the closure, the Square 1 leadership team will be transferred over to NicThic and will set up a new entity and have agreed to partner and collaborate with us to develop future films and provide production support. While NicThic will be hiring a portion of the Square 1 employees, its size and resources prevent it from offering positions to the entire Square 1 team. We hope to integrate much of this creative talent into NicThic, where we have relevant openings."

"Square 1 Animation has produced many notable films over the years, including Blue Ball, Matt and Jeff, and Life Before Paradise - that have helped NicThic become a leader in animation and film production. And now, Road Rovers is already proving to be a hit by people who have seen the original cartoon. The Square 1 team is committed to continuing animation production of the film through the completion of Road Rovers. We're also working closely with the division's leaders to ensure a release of the film in mid September 2006. We will support the division in every way possible as they work to deliver this highly anticipated film to theaters."

"This action notwithstanding, I want to emphasize that the overall investment NicThic is making in film development is not diminished, and we will continue to bring in talent to work on movies and franchises where we'll see the most. Our priority is to continue to nurture the creative freedom that allows us to successfully drive our business strategy forward. Meanwhile, we're working on new films that will hit theaters in the next few months. We've released our first film, Fox's Island, in 2005, while Life Before Paradise and Bad Kitty are scheduled to hit theaters in April and July respectively."

"I want to thank you for your hard work and focus as we head into the next few months and make this a blowout year for our films. Please be supportive and respectful of our Square 1 colleagues as they go through this tough time."

"D.A. Nichols"