Melbourne, Australia-based licensing agency Gaffney International, helmed by industry pioneer Fred Gaffney, may be on the verge of closing its doors. According to a letter issued by Gaffney, cash flow issues and ‘pressures resulting from an ongoing legal action’ forced the company to seek an external financial administrator earlier this month. As for the lawsuit in question, Gaffney International is suing preschool supergroup The Wiggles over claims of unpaid commissions.

Melbourne firm CJL Partners is administering Gaffney International with the aim of appointing a receiver who will work with Gaffney’s creditors to determine whether to keep the business going or to close it down. A decision should be reached by the second week of September. Gaffney’s website (www.gaffney.com.au) and office phone line are currently off-line, and the company’s letter to partners states, ‘I have no doubt that opportunities to further your interest in Australia and New Zealand will continue to arise, and we would wish you and any future partners in our territory all the very best.’

The lawsuit, meanwhile, stems from the period during which Gaffney International served as the exclusive licensing agent for The Wiggles in Australia and New Zealand. The relationship ended in December 2006. According to Victoria Supreme Court documents (Victoria is a state of Australia), the court action began on Friday, August 17. There is no indication as to when it will be resolved. Gibsons Solictors’ founder Stuart Gibson, who’s handling the case for Gaffney, refused to comment on the proceedings.