Startup IA picks up 'Stinks'

Company plans 12 to 16 feature slate by 2001

By LEONARD KLADY

Startup production-distribution company Independent Artists has acquired the romantic comedy "Love Stinks," which will open nationally this summer.

The privately capitalized venture's ambitious plans are to have an annual slate of 12 to 16 features beginning in 2001. The company will develop and produce features, co-finance productions, distribute in the domestic marketplace and serve as an international sales agent.

"It's designed as a vertically integrated boutique studio," said CEO Lee Lacy, a major player in commercial production and direction. "Several years ago, I had wanted the commercial agency to expand into features as Propaganda did, but the risk and startup costs made it a very low priority for the board. I finally had to bite hard and set up a separate company with a specific purpose and direction."

Lacy and IA chief financial officer David Sheldon said recent changes in the domestic and international marketplaces ultimately dictated the structure of the company. As virtually all the major outlets for nonstudio product have become absorbed by studios (and niche divisions have been established by other players), the prospects for any significant theatrical exposure for a nonaligned release have all but evaporated.

Industry vets Mark Borde and Gene Irwin -- who currently operate Legacy -- will spearhead IA's distribution arm. Borde said the emphasis will be on mainstream releases, although the possibility of a separate niche division -- possibly using the Legacy name -- is under consideration. Legacy will continue to operate as an independent entity from the IA for the present.

"Obviously, the new company will need time to establish itself," Borde said. "But we got very lucky in being able to acquire 'Love Stinks.' It's right in step with pictures like 'There's Something About Mary' and the current crop of teen movies."

"Love Stinks," starring French Stewart (TV's "3rd Rock from the Sun"), Bridgette Wilson, Tyra Banks and Bill Bellamy, centers on a whirlwind romance that dramatically goes sour a la "The War of the Roses."

Produced by Craig Baumgarten, the feature theatrical debut of "Full House" creator Jeff Franklin was a Polygram release. With recent upheavals at that company, Baumgarten was able to reacquire the film and shop it to other distributors.

"It was like a gift fell into our laps -- it was exactly the type of film we wanted to establish our name," Lacy said. "We saw it on a Tuesday evening and by late Wednesday we had a deal memo that was agreeable to all parties."

"Love Stinks" will open domestically Aug. 20 in between 1,200 and 1,500 theaters. It also will screen in Cannes, where the company will make its official market debut. Its international division is headed by Kevin Mills and Ellen Endo, formerly partnered at Duet Entertainment and Republic Pictures.

Sheldon said IA should be able to announce the acquisition of at least two other pictures at Cannes and present its initial inhouse productions, which will begin lensing in the fall. The first features will be budgeted in the neighborhood of $5 million to $10 million with more ambitious projects in its future co-ventured with other major producers.

"The elements really came together very quickly once we had a game plan in place," Sheldon said. "All of us have been involved with both successful companies and ventures that failed and hopefully that collective experience has helped us build a better mousetrap."