Icon U.K. to shut distribution arm

After several weeks of speculation, Icon U.K. Group is shuttering its U.K. distribution arm with Lionsgate U.K. thought to stay in discussions to purchase its library and take care of future releases of acquired game titles within the territory. This news uses Len Blavatnik's Access Industries, which bought Icon U.K. Group in November 2009, drawn on Aviv Giladi as Boss of the organization a week ago inside a move likely to herald a change toward a far more production-based business.Based on sources, the rest of the 32 employees in the London-based company were advised a week ago that roughly 20 could be axed. Icon U.K. Group is certainly going via a consultation phase to determine which positions to reduce. Furthermore, sources stated that Lionsgate is anticipated to buy the business's U.K. library, including "Drive," "Just One Guy" and "Precious."Purchases that haven't yet been distributed in Blighty include low-budget horror "You are Next," which Icon pre-bought for low six-figures from HanWay Films at Cannes. Coincidentally, Lionsgate acquired U.S. privileges for that pic following its preem at Toronto. For the moment, sources state that the foreign sales arm, headed up by Hugo Grumbar, will stay intact but lengthy-term plans will be to eventually close that fraction from the business and concentrate exclusively on production and purchase of commercial photos. This is not the very first time this season that Icon has axed jobs: In The month of january, Icon let go 15% of their staffers included in cost cuts because of the elevated demands facing its U.K. biz. At that time, gossips were circulating that Access had given Grumbar and Ian Dawson, controlling director from the U.K. arm, annually to exhibit results or the organization could be shut. In October, Variety says Access have been shopping Icon's U.K. library to potential purchasers following a distrib's weak performance. Giladi, who's chairman of Israeli media company R.G.E. Group along with a non-executive director around the board of Ealing Galleries, is thought to become among the figures controlling the possibility purchase of Icon's U.K. library. Icon declined to comment during the time of likely to press while Lionsgate was not available for comment. Contact Diana Lodderhose at diana.lodderhose@variety.com