End of story for ER creative whiz

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Jane Smith, credited with bringing Postman Pat into the 21st century and introducing him to the latest generation of under-fives and resting university students, has followed group chief executive Nick Phillips out of the door at the Hammersmith-based firm.

Entertainment Rights makes kids' TV programmes such as Postman Pat, Basil Brush and Rupert Bear, and produces DVDs, digital games and merchandise from the characters. It got into trouble last Christmas when it failed to get its product in the shops in time.

Over the past year, shareholders including its main backer, leisure tycoon Trevor Hemmings, have seen the stock lose more than 95% of its value. Smith's departure with a pay-off of about £350,000 follows the axeing of Phillips last week after nine months in the job.

Smith is going after nine years, latterly as chief creative and commercial director. She leaves after junior director Deborah Dugan, a former Disney executive, was appointed over her head as chief executive. Entertainment Rights is cutting a third of its staff, with about 25 staff in Hammersmith going before Christmas.

There had been fears the group would follow its main customer Woolworths, which accounted for 20% of ER sales, into insolvency.

However, the cost-cutting has persuaded HBOS to extend the group's £130 million overdraft by £13 million until February.