article behind a pay wall, providing some details. Deloitte, the receiver, ran an auction to purchase the rights to Arc's continuing projects. Jam Filled Entertainment, an Ottawa studio bought just weeks ago by Boat Rocker Media, won the auction. However, the deal has to be approved by the court and Jam Filled will be doing additional due diligence before the deal is concluded.
One part of the deal is that enough of Arc's former employees are willing to return to the projects they were working on. The hope is that the deal can be finalized within the next two weeks.
As of now, there are many questions. I assume that the work will stay in Toronto. If they're looking to rehire Arc employees, it's going to be easier to do this without asking them to move to Ottawa.
While the deal obviously includes contracts for the work and the files created so far, does it include the hardware that the files are sitting on? Will they occupy Arc's former space or move to another location? Software licenses are not always transferrable. Will Jam Filled get rights to the licenses as part of the deal or will they have to purchase new ones? Which clients will be willing to continue their projects with Jam Filled and which will prefer to move them elsewhere?
Will there be pay cuts for returning employees? How much? Will they be across the board, meaning that everyone rehired gets the same percentage of their former salary, or will salaries be negotiated from scratch?
Who will be managing all this? As Jam Filled is located in Ottawa, will they be sending a management team to Toronto? Will they be hiring local management talent? As management was the source of Arc's problems, hiring the right team will be critical to the success of the salvage operation.
Will Jam Filled continue the facility, assuming it is in Toronto, once the existing contracts are completed? That may not be decided until projects are delivered and the balance sheet is scrutinized.
While Jam Filled's acquisition, assuming it goes through, is certainly good news, much more will have to be answered before this can be called a success or failure. Good luck to everyone.