Canadian animation giant Nelvana ceased production work as of last week, as owner Corus Entertainment continues to grapple with broader business challenges.

However, Corus says the 54-year-old banner will continue operating other business strands—including sales and consumer products. 

Reports that Nelvana was closing down entirely first emerged on social media over the Labor Day weekend, which Corus refuted.

“To confirm, Nelvana is not shutting down,” a Corus spokesperson tells Kidscreen. “It was announced earlier this year that as certain productions were completed, we would be pausing new studio productions for the time being. Nelvana continues to operate, focusing on distribution, merchandising, and managing existing properties.” 

Through the decades, Nelvana had carved out a legacy as one of the biggest forces in Canadian animation—with production credits on several iconic series like Babar, The Magic School Bus (pictured), Franklin, Max & Ruby, 6Teen and The Backyardigans, as well as more recent titles like Millie Magnificent. 

Cal Brunker, director of the PAW Patrol films, was among those who expressed sadness reacting to the initial reports online. “What a bummer… Nelvana was my first steady animation job out of school. I worked as a cleanup artist in the design department on a show called Cyberchase,” he wrote on X. “I spent all day every day listening to audiobooks and cleaning up my supervisor’s design sketches.”

Corus declined to disclose how many roles were impacted by this decision, which is the latest blow to Canada’s kids and animation sector. Just last week, WildBrain announced the closure of kidsnets Family Channel (family), Family Jr. (preschool), WildBrainTV (six to 15) and Télémagino (French-language kids) as they were “no longer commercially viable.” 

And Corus—which has been implementing numerous cost-cutting measures over the past year—also decided over the summer to shutter five children’s channels in the region, including Nick, ABC Spark, Disney XD, Disney Jr. and La Chaîne Disney.