Aug. 28, 2009
Fatkat's assets got a little skinnier yesterday at an auction of the animation studio's equipment.
Computers, monitors, bookshelves, filing cabinets, a barbecue, pool table and foosball table were just some of the items on the auction block.
Fatkat owner Gene Fowler said he knew the sale was coming for a few months, but it wasn't a big deal to him and the equipment served him well over the years.
"Great stuff. I'm sure the Royal Bank will get all their money back."
Although the company received millions of dollars in support from various government agencies, the company was not able to find enough contracts to repay its debts and folded in May.
At the time Fowler said the company would need six to eight years of consistent revenues of $5 million to $6 million to repay all outstanding debts.
Prior to Fatkat's demise, Fowler announced he was forming a new animation studio called Loogaroo, which would use a different business model than the previous studio.
Although he said Loogaroo is just getting started up, he said they bought some of the Fatkat gear from a private sale with the auctioneer prior to yesterday's auction for the rest of the equipment.
"I'm sure it will go to a happy home. There's still a lot of good stuff over there. If there's any animators I'm sure they'll get some good stuff."
As for what he thought of the last remnants of his company being sold off at auction, Fowler said it was just a business.
"I've already moved on. I moved on a long time ago. Businesses come and go. It's the nature of it. No business lasts forever, of course there are a few businesses that have lasted a long time, but no businesses last forever."
Fowler said Fatkat owed a lot of people money and although he didn't know the exact amount, it was well over $1 million.
In June he declared personal bankruptcy to help expedite the proceedings, he said.
"I'm absolved of all the debt."
Fowler said there are still some people in the Miramichi he feels connected to that the company owed money, and he plans to repay them, despite his bankruptcy.
"It's going to take me a while, but I'm still going to do it. That's just my personal obligation, my moral obligation."
But he won't be able to repay the money owed to different organizations like the Atlantic Canada Opportunities Agency because of the large amount owing, he said.
"ACOA knew what they were getting into when they gave me all that cash and everybody else did too. I used that money for exactly what it was intended for and that was buying capital equipment or marketing or putting people to work and I did that for a very long time without interruption."
Fowler said it's not the first business that has folded after receiving funding, and he is still friends with the people at ACOA.
"They hold no grudges and nobody else does either."
Business New Brunswick was one of the government departments to help Fatkat and had a $500,000 loan guarantee with Fatkat.
Department spokesperson Ashley Bursey said she wasn't sure if they were going to get any money out of the sale.
"It's really too early to tell right now."
The bank is in the process of liquidating Fatkat's assets and Business New Brunswick won't know if they will get any money until they are done.
"We really won't know until that's all finished."
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