ITV has put the founders of one of its leading reality TV companies, Gurney Productions – the maker of US cable hit Duck Dynasty – on temporary leave as it launches an investigation into the business.
The UK broadcaster would not comment on the nature of the investigation into the company, founded by Scott and Deidre Gurney, despite repeated requests.
ITV took a 61.5% stake in Gurney for $40m in 2012, as part of chief executive Adam Crozier’s first move to build its now sizeable ITV Studios production business in the US, with a put and call option to buy the remainder of the company at three and five years.
Gurney is best known for reality show Duck Dynasty, the most-watched non-fiction series in US cable history, which is set to head into its final season on A&E next year.
“The board of Gurney Productions is currently in discussion with Scott and Deirdre Gurney about future arrangements with them,” ITV said in a statement.
ITV has appointed Craig Armstrong – the co-founder of 5X5 Media whose credits include CBS’s Survivor and Jamie Oliver’s Food Revolution – as interim chief executive of Gurney Productions. Chris Valentini, chief operating officer of ITV America, will also help oversee the company.
In a memo to staff Armstrong said the Gurneys had been put on a “short, temporary leave of absence”.
“Starting immediately, Scott and Deidre are no longer responsible for the day-to-day operations of the company,” he said. “Gurney Productions is a very important part of the ITV family and we are committed to keep things running smoothly until the situation with Scott and Deidre is resolved,” he said.
Armstrong added that he would need to question some staff, alongside legal counsel, as part of the investigation.
The US production arm of the ITV Studios business reported a 34% decline in revenues in the first half of the year.
America has been Crozier’s main market for international expansion, and hundreds of millions of pounds have been spent buying the companies behind shows such as Pawn Stars and Cake Boss.
Crozier has spent £1.2bn acquiring 15 production companies, a figure that could rise to nearly £2bn by 2021 if the former owners reach their earn-out targets, triggering further payments.
The entire ITV Studios operation, which makes shows from Coronation Street and Come Dine With Me to Hell’s Kitchen and Poldark, reported an 18% boost in revenues to £923m in the first nine months of the year.
However, growth was driven by new acquisitions, which last year included The Voice maker Talpa Media and Poldark and Parade’s End maker Mammoth.
Stripping this out, ITV Studios saw revenues decline 9% on an organic basis in the first nine months. The broadcaster expects profits at ITV Studios, which have risen from £91m in 2009 to £250m by the end of this year, to be flat in 2017 as it focuses on major investment in finding new hit shows.
