Production of new movies at historic RKO Pictures was halted Thursday by owner Gencorp, which said a $48-million sale of the subsidiary to a management group fell through because of failure to arrange the financing.
Gencorp, an Akron, Ohio-based aerospace firm, said it would "begin again" to seek buyers for the firm and its 750-film library, which is by far its chief asset. The library includes various rights to mostly pre-1955 films, including "Citizen Kane," "King Kong," "The Hunchback of Notre Dame" and "Top Hat."
RKO's long-dormant movie production was resumed in recent years with conspicuous lack of success at the box office.
A small part of the money for the intended purchase was to be put up by several RKO Pictures executives and their backers, Alan J. Hirschfield and Robert Fell. Hirschfield is former chief executive at Columbia Pictures and 20th Century Fox Film Corp. and Fell is a business consultant.
Management to Stay On
The price and financing details, as reported by The Times last March, were given in an "informational memorandum" prepared by New York investment banker Paine Webber Inc., which was seeking to sell $30 million of convertible preferred stock in a private placement as part of the purchase financing.