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A&G; Productions Plans Reorganization

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San Diego County Business Editor

A&G; Productions, which banked much of its future on a cable-television industry expansion that never materialized, will slash its nine-member work force to three today as executives begin a restructuring effort to avert bankruptcy and regain their status as San Diego’s biggest video production company.

Earlier, A&G; had said it would close its doors today, but, late Thursday, company President John Long said that he and partner John Hynd had “changed our minds” and would keep their Mission Valley-based facility open.

Long refused to discuss the company’s financial woes or why it decided not to close. “I can’t say why we’re scaling back (because) it could impact some future litigation,” he said in an interview, adding that “we have made a decision not to file for bankruptcy” (Chapter 11 protection).

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A&G; relied heavily on cable television’s potential demand for video production, according to industry sources.

“Long put all of his efforts in the cable industry, spending lots of time and money, but there’s no money there,” said one A&G; competitor who asked to remain unidentified. Long would not elaborate on his firm’s financial problems, but he acknowledged that “we haven’t made any secret of what we’ve been doing.”

Especially devastating, sources said, was a potentially lucrative cable deal that soured late last year, leaving A&G; with a loss of as much as $100,000.

Long declined to discuss specific deals.

Fifteen-year-old A&G;, which Long said generated revenue last year of more than $1 million, was sold eight years ago by founder Phil Arenson to Vidtronics, a division of Technicolor. Five years ago, Technicolor sold the company back to A&G; employees Long, a producer by trade, and Hynd, considered one of San Diego’s most creative directors.

Not affected by A&G;’s cuts is Sunset Communications, a company co-owned by Long that markets Televue, a video-oriented tourist information service offered at area hotels.

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