Key funder withdraws from Crown Works Studios project

The BBC reported that Cain International had withdrawn from the major film and television studio project in the north-east of England.

The remaining backer, Fulwell Entertainment, told the BBC that it remained committed to working with Sunderland City Council to find "appropriate private funding" to allow the development to continue.

The UK government has committed £25m towards the project, while the council and the North East mayoral authority have committed to invest about £120m.

Labour-led Sunderland City Council said the proposals were "being presented to the investment market, with the aim to put in place a final funder and developer later this year".

A spokesperson for Fulwell Entertainment told the BBC: "Fulwell Entertainment remains committed to working with the council to find appropriate private funding, complementing the combined NE authority and wider government funding needed to make these world-class production studios a reality."

The studio was given the go-ahead last year. Its backers say it will create 8,000 jobs and provide 19 sound stages on a 1.6 million sq ft site.

The news comes as demand for studio space cools amid a slowing down in major productions shooting in the UK compared to the post-pandemic filming boom.