Company co-founders Keith Chapman and Andrew Haydon will remain at Chapman Entertainment, but co-founder, managing director and executive producer Greg Lynn will pursue other interests.

Valerie Fry will become commercial director, with responsibility for licensing and marketing, supported by Clare Wiggins, head of marketing and live events, and Samantha Clapham, product development executive. The company will appoint a licensing and marketing agent.

Emily Whinnett will continue as director of production, managing the filming of "Little Charley Bear" and "Raa Raa the Noisy Lion."

“We are devastated to have to let go so many first class people who have contributed so much to our growth and success over the years," says Chapman. "I can’t thank them enough for all they have done. But with soaring costs and challenging trading conditions, we’ve been forced to make these tough decisions. However, Charley and Raa Raa both show extremely positive early signs, and with Roary just launched into the U.S. through Toys 'R' Us, with a major roll-out in early 2012, the future is looking bright.”