Butt Ugly Martians fall to earth as Just calls administrators

Just Group, the cash-strapped children's entertainment company behind the Butt Ugly Martians television series, was forced to appoint administrators yesterday.

Just Group, the cash-strapped children's entertainment company behind the Butt Ugly Martians television series, was forced to appoint administrators yesterday.

The company suspended trading in its shares in November after it ran out of cash. There has also been an alleged failure by an outside auditor to spot £2m of debt belonging to an acquisition it made. The children's character market has in recent years generated much interest and it is thought that a rival will snap up Just from the administrators, KPMG.

A report last night suggested that a US television and film company had been in talks to buy Just, but had held back because it hoped to acquire the business more cheaply from administrators.

Just said: "The board remains confident that the properties owned by Just Group, including Butt Ugly Martians, have excellent prospects and are hopeful that new funding can be secured."

The company, which was also hoping to relaunch the puppet stars Pinky and Perky, ran into trouble in May last year, as it pumped money into Butt Ugly Martians, but was left with a funding gap until merchandising revenues from the show came on tap.

In 18 months from March 2000, Just spent £21m from two fundraisings, as well as its £4m overdraft. In August, Just ditched its co-founder and chief executive, Wilf Shorrocks, after a disagreement over accounting practices, and said it would make a "substantial" loss in the year ended 30 April 2001.

The company added that the previous year's accounts would also show a loss, rather than the previously stated profit.