LOS ANGELES—Palomar Pictures is winding down operations and will soon shut its doors. Staffers were informed of the decision last week. At press time, the Los Angeles-headquartered house was wrapping its spot commitments, producing jobs that were already in its pipeline. Once those projects are finished, so too will be the company, after an 11-year run.
SHOOT talked briefly with Palomar CEO/chairman Joni Sighvatsson, who said his shop’s viability was damaged when unfounded rumors surfaced over the past year about it being in financial trouble and on the verge of closure. Sighvatsson contended that he couldn’t shake those rumors and that they did irreparable harm to his business, in a sense becoming a self-fulfilling prophecy.
SHOOT reached Sighvatsson on his mobile phone. He said he couldn’t continue the conversation at that time but would later be available to answer questions. At press time he had not returned a follow-up phone call.
It remains to be seen what Palomar’s plans are relative to its creditors. Not known at press time was the extent of Palomar’s financial obligations. As SHOOT went to press, a search of the California court system’s public records did not turn up any bankruptcy filing by the company.
Palomar was launched in 1992 by executive producer Jonathon Ker and music video veteran Anne-Marie Mackay (now an independent feature producer). Warner Music Group acquired half of Palomar in ’95, but Ker and MacKay bought back that 50 percent a few years later.
In ’99, Mackay left Palomar. At that time, Sighvatsson became majority owner, acquiring Mackay’s interest in Palomar, as well as a percentage of Ker’s holding in the company. In ’02, Ker exited Palomar, divesting himself of his 20 percent ownership stake. Ker is currently freelance producing on both the agency and production house sides of the business, working regularly with Santa Monica-based ad shop Amoeba.
Palomar maintained several Los Angeles-based operations, including commercial production, music video, feature/TV and documentary divisions; Palomar Latino America for U.S. Hispanic and Latin American market spots; Slo.Graffiti, which handled up-and-coming commercial directing talent from various disciplines (i.e. artists, designers, film school grads); and Palomar International, which specialized in landing select spot assignments for feature directors. Palomar additionally teamed with urban marketing/promotions company Persaud Brothers, New York, Los Angeles and Atlanta, on a youth-oriented production house, Persaud@Palomar. And Palomar was involved in SuperMega, a joint venture with noted music video director Joseph Kahn. Prior to Palomar’s decision to close, Kahn exited to link with bicoastal HSI Productions for spot and music video representation. SuperMega is becoming an HSI satellite.
The plans of other directors at the Palomar labels were not known at press time. Palomar’s last major directorial signing was Gary McKendry, who came over from bicoastal Go Film at the beginning of the year (SHOOT, 1/17, p. 1). That deal called for Palomar to rep McKendry for spots worldwide, except for Canada, where he is handled by Circle Productions, Toronto and Vancouver, B.C.
Sighvatsson’s business model for Palomar was based largely on diversification spanning shortform and longform. The foundation for that philosophy was laid during Sighvatsson’s days at Propaganda Films, a company he co-founded in ’86. He served as its co-chairman with Steve Golin (who now heads bicoastal Anonymous Content). Propaganda-which Sighvatsson exited in ’94 —gained industry prominence and won numerous awards. The shop, which produced spots, music videos, features and TV programs, encountered major financial difficulty under a new regime and closed in November ’01, leaving behind a trail of debt.
