Milky Tea looks for investment as animation arm closes

LIVERPOOL-based Milky Tea has closed its animation business with the loss of six jobs due to foreign competition.

The company, led by Jon Holmes, will now focus on developing its gaming arm, which it launched last October, and is looking for investment of around £100,000.

It blamed market changes forced by the economic crisis which have led to an increased reliance on foreign studios, cheaper freelancers and more in-house work.

Over the past eight years Milky Tea has worked on Lloyds TSB’s ‘For the Journey’ campaign and with the BBC, Sony, Unilever and Procter & Gamble. It will retain five staff and continue to trade under the same name.

Mr Holmes said: “It is with deep regret that we announce the closure of our work for hire animation and illustration departments, and in turn redundancies for a proportion of our staff. The decision was not taken lightly, and in no way reflects the quality of the work that our incredible team of artists has produced, or the company-wide performance.

“We need to secure the future of the company, and to do this we’ve had to streamline operations by discontinuing some services, for which profits have continued to decrease. We are actively looking for funding and investment for our new game, Coffin Dodgers, which we hope can we can secure to safeguard jobs, complete work on our new game and in turn, grow the company once more. I hope we can rely on the support of local businesses and the various public sector departments to make this a reality.

“I am confident that the critical success of Roller Rally and the subsequent reception of Coffin Dodgers means that this decision is the right one, and that the move signals big things in the future for Milky Tea.”