APA receives major loan from Ron Burkles Yucaipa Companies

The APA Talent and Literary Agency has secured a loan from Ron Berkles Yucaipa Companies as the agency seeks to recover from the effects of the coronavirus pandemic shutdown.

The details and amount of the investment were not disclosed, but it has been described as a significant investment for the agency and is not an investment that will give Berkle or Yucaipa an interest in the agency.

A person familiar with the deal told TheWrap that Yucaipa had no plans to be involved in the deal. The investment will instead appear on the APA’s books as debt and is intended to help the company expand and support the continued growth of the agency’s core business.

“With so much uncertainty in the entertainment industry, we are thrilled to be working with a person and company that are so aligned with our vision for the future of our business,” said Jim Gosnell, CEO and President of APA. “Ron Burkle and Yucaipa share our philosophy for disciplined growth and are 100% behind our strategy of expanding our core business on all media platforms.”

APA, like many Hollywood agencies and other corporations, has had several tough months amid the pandemic that rocked Hollywood. In June, the APA was forced to run a second round of vacation and pay cuts three months after the first in March. The steps were an attempt to cut costs and streamline business during the shutdown.

Berkle’s Yucaipa Companies have also shown interest in investing in Paradigm in the past, which also struggled this summer when the pandemic choked the live music business.

Founded Yucaipa in 1986, Burkle has grown into a premier investment firm promoting business value through the growth and responsible development of companies.

Variety was the first to cover the news.

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