Company Town : Begelman Doing Yet Another Retake

David Begelman is back . . . again. The veteran producer and studio executive, who’s still best remembered for his starring role in the check-forging scandal that rocked Hollywood in the 1970s, is in advanced negotiations to secure financing for a new production company.

Begelman’s partner would be Sidney Kimmel, a Pennsylvania-based clothing magnate who has dabbled in the movie business. Sources say the two and their representatives have spent weeks working out the details of the agreement, which is expected to be announced soon.

If the Kimmel deal is consummated, the 72-year-old Begelman will reaffirm his standing as the Energizer bunny of the Hollywood executive set. Despite being brought down by the Columbia Pictures check scandal more than 15 years ago, he just keeps going and going in the film business--having headed two other studios and two independent production companies.

In a brief interview Monday, Begelman confirmed that the discussions are under way. But he deferred to Kimmel, who could not be reached for comment, to elaborate on the plan. “The company is on the front burner, to use a cliche,” Begelman said. “Some kind of announcement is fairly imminent. I’d exaggerate if I said days. It’ll be more like weeks.”

Sources say the biggest remaining complication is transferring some commitments from Begelman’s old company, Gladden Entertainment, to his new one. Gladden last year said it signed a 10-picture, $150-million set of distribution deals with Metro-Goldwyn-Mayer, Live Entertainment and Rank Film Distributors.

Sources at MGM and Live confirmed that the companies are independently in discussions about transferring their distribution agreements. Rank could not be reached for comment, but Begelman said “it’s likely” that all three will be on board when the new company comes together.

Gladden Entertainment was sent into involuntary bankruptcy by the major talent guilds in April for allegedly defaulting on $4.1 million in residuals. Begelman’s new firm, Gladden Productions, was formed before the old one went out of business. He acknowledged that the similar names of the companies is confusing.

“The company is a living, breathing entity, and we’re in business to make movies,” he said. “I’ve been chastened for choosing such an unimaginative name. But I had no idea about what would happen with Gladden Entertainment. My lawyers are moving to change the name.”

Begelman owned 50% of Gladden. His former partner, Bruce McNall, will have no involvement in the new company. The former Los Angeles Kings owner recently filed for personal bankruptcy.

Kimmel is the chairman of Jones Apparel Group Inc. in Bristol, Pa. The son of a cabdriver and himself a college dropout, he made his fortune after taking the clothing company public in 1991. Kimmel recently made the Forbes magazine list of the 400 richest people in America.

*

It’s unclear whether Kimmel plans to invest in the new movie venture through Jones or privately. In the past he’s been casually involved in Hollywood, and was described by Begelman as one of Gladden’s backers at the 1993 Cannes Film Festival. Kimmel’s production credits include “The Clan of the Cave Bear,” “Blame It on Rio” and the cult hit “9 1/2 Weeks.”

Begelman is one of the industry’s most durable figures, having survived the 1978 scandal in which he was found guilty of embezzling $40,000 from Columbia Pictures at a time when he served as studio chairman. The case spawned the best-selling book “Indecent Exposure.”

After paying a $5,000 fine and completing a public service documentary, Begelman resurfaced as chairman of MGM in 1979. Short stints at United Artists and Sherwood Productions followed, before he co-founded Gladden in 1984. The company enjoyed some early success with “The Fabulous Baker Boys,” “Weekend at Bernie’s” and “Mannequin.” But its fortunes soured in the 1990s when it released box office losers such as “Short Time” and “Mannequin II.”

A lawyer for the talent guilds had no comment Monday on Begelman’s plans to form a new company. In an April lawsuit, they said Gladden had failed to file quarterly residual reports for more than a year. Gladden disputed the amount allegedly owed and said the guilds should direct their claims to French bank Credit Lyonnais because the bank held a lien, which sources placed at $90 million, on Gladden assets.

*

President and accounted for: It used to be said that Hollywood studios were overloaded with vice presidents of every description. There were senior vice presidents, executive vice presidents and even senior executive vice presidents. Now comes a similar glut of presidents.

Walt Disney Co. confirmed Monday that Michael Layton is the new president of Hollywood Pictures. He reports to Walt Disney Studios Motion Picture President David Hoberman, who is under Walt Disney Studios President Richard Frank. Working with Layton are Donald De Line, president of production for Touchstone Pictures; David Vogel, president of Walt Disney Pictures, and Peter Schneider, president of feature animation.

At Sony Pictures, meanwhile, Fred Bernstein got the expected nod as president of its motion picture group. His colleagues include TriStar Pictures President Marc Platt, TriStar Production President Stacey Lassally and Columbia Pictures President Lisa Henson.