Award winner shuts rather than move out
AN AWARD-WINNING Middlesbrough animation firm is closing its doors after admitting it could not achieve its ambitious expansion plans on Teesside.
But MoShine, which specialises in animation and motion graphics, insisted the area would remain a thriving hub for digital companies.
Earlier this year MoShine pledged its loyalty to Teesside, as major plans to create a rival “digital square mile” in Sheffield were announced.
But a change of heart has followed and yesterday the firm said a move away from Teesside would have been necessary to boost growth.
Co-founder Satish Shewhorak said: “We were turning over around £100,000 and felt the business was reaching a plateau. We looked at options in Newcastle and Manchester but we needed to be in Soho to take the business on. We didn’t want to relocate so we’ve decided to go our separate ways.”
Mr Shewhorak confirmed the decision to wind up the company had nothing to do with its finances or increased rental costs in Teesside’s digital hub.
He said: “We’ve been consistently profitable during the last three years. Rental costs and the cost of living is good value here. It’s an excellent place for start-ups in particular.”
Mr Shewhorak, who is currently pondering his next move after receiving offers to work for two North-east-based digital media agencies, revealed the company received an offer from another party hoping to capitalise on its established brand. But an agreement could not be reached and, with no other offers on the table, MoShine will cease trading.
Since its formation in 2005, the company’s three founders - Mr Shewhorak, Michael Siu and Stephen Caie - have built MoShine into an well-known name in Teesside and beyond. The firm has won numerous accolades including the best new company award at the DigitalCity Fellowships 2005 exhibition.
Mark Elliott, director of Digital City Business - the Tees Valley’s digital and creative sector champion - commended MoShine on its efforts and said there were “fantastic” opportunities for other Tees-based start-ups to grow into established SMEs.
He said: “They have done incredibly well and I wish them the best of luck. There’s a perception that some industries inside the digital sector need a bigger platform, such as Soho or Bristol.
“Creating a digital sector is a 25-year operation and we are only five years old - effectively three years on the business side. In the broader digital media sector we have companies talking to venture capitalists about £1m or £1.5m investments and others hoping to employ 40 staff.”
He was optimistic that Teesside could benefit from a slice of a £7.5bn Government windfall, announced earlier this year, to boost growth within the sector.
According to Culture NorthEast, part of the regional development agency, the commercial creative industries are a growing economic powerhouse for the region. They involve 2,200 businesses, are worth £800m to the economy and employ 30,000 people.
It is estimated that new media, games and interactive software companies alone generate £256m in turnover regionally, with 14% of the valuable new media, video games and interactive software companies, each turning over in excess of £1m per annum.
