RIP Nelvana: Animation Studio Behind Star Wars Cartoons, Beetlejuice and Care Bears Closes Its Doors
In a heartbreaking blow to animation fans and the Canadian entertainment industry, Nelvana, the storied Toronto-based studio that brought us iconic cartoons like the Care Bears, Babar, and pivotal Star Wars animated adventures, has reportedly shuttered its doors after more than five decades of creativity. Workers at the company have shared that operations ceased last Friday, marking the end of an era for one of North America's pioneering animation powerhouses.
Here's the TLDR...
Shutdown Announcement: Nelvana, founded in 1971, has reportedly closed down as of late August 2025, with employees confirming the studio's abrupt end amid ongoing financial struggles at parent company Corus Entertainment.
Studio Legacy: From humble beginnings in Toronto to becoming Canada's first major animation exporter to U.S. networks, Nelvana produced over 100 shows and films, blending heartwarming kids' content with edgy adult animations.
Notable Hits: Classics like Care Bears movies, Beetlejuice: The Animated Series, Franklin, and Bubble Guppies defined childhoods, while co-productions like Clone High pushed boundaries.
Star Wars Connection: Nelvana's work on the infamous Star Wars Holiday Special's animated segment paved the way for the beloved Droids and Ewoks series in the '80s.
Reasons for Closure: Economic pressures, including ad revenue slumps, U.S. strikes, and cost-cutting at Corus, led to layoffs and development halts, culminating in the full shutdown.
The Rise of Nelvana: A Canadian Animation Pioneer
Nelvana's story begins in the vibrant cultural scene of 1970s Toronto, where three visionaries—Michael Hirsh, Patrick Loubert, and Clive A. Smith—came together to found what would become Canada's flagship animation studio. Named after Nelvana of the Northern Lights, a superheroine from a 1940s Canadian comic book series, the studio embodied a spirit of innovation and national pride. Starting small with experimental shorts and commercials, Nelvana quickly distinguished itself by blending artistic flair with commercial appeal.
By the late 1970s, the studio had expanded into feature films and TV specials. Their first major project, the 1977 holiday special A Cosmic Christmas, showcased their unique style and caught the eye of international producers. This early success set the stage for Nelvana to break barriers: in the 1980s, it became the first Canadian animation company to secure deals with major U.S. networks, exporting content that resonated globally.
Over the years, Nelvana grew through acquisitions and partnerships. In 1999, it was acquired by Corus Entertainment, integrating into a larger media ecosystem that included kids' TV channels. This move fueled expansion, but it also tied the studio's fate to broader industry trends. By the 2000s, Nelvana was a powerhouse, producing content for networks like Nickelodeon, Disney, and PBS, while maintaining its Toronto roots.
Iconic Series and Movies: Shaping Generations of Viewers
Nelvana's portfolio is a treasure trove of beloved animations that spanned genres and audiences. For kids, the studio became synonymous with wholesome, imaginative storytelling. The Care Bears franchise, starting with TV specials in the early 1980s and evolving into movies like The Care Bears Movie (1985), introduced fuzzy guardians of feelings to millions. These pastel-hued adventures not only dominated toy shelves but also taught lessons on empathy and friendship.
Other standouts include Babar the Elephant, an adaptation of the classic French books that ran from 1989 to 1991, bringing elegant tales of royalty and adventure to screens. Franklin, the turtle-centric series about growing up, aired from 1997 to 2004 and became a staple for preschoolers. Nelvana also tackled literary adaptations like The Adventures of Tintin (1991-1992), capturing Hergé's globe-trotting mysteries with fluid animation.
On the edgier side, Nelvana co-produced adult-oriented shows like Beetlejuice: The Animated Series (1989-1991), which spun Tim Burton's gothic comedy into kid-friendly chaos, and Clone High (2002-2003), a satirical take on teen drama featuring cloned historical figures. Films like the cult classic Rock & Rule (1983), a rock opera with anthropomorphic animals battling evil forces, showcased their experimental side, though it bombed at the box office but gained a following later.
More recent hits include Handy Manny (2006-2013), a bilingual tool-fixing adventure, and Bubble Guppies (2011-2016), an underwater preschool musical extravaganza. Nelvana's ability to adapt books, comics, and original ideas into animated gold made it a go-to for international co-productions, amassing over 100 titles in its library.
Nelvana’s Star Wars Legacy: From Holiday Special to Galactic Cartoons
Nelvana's involvement with the Star Wars franchise represents a cornerstone of early animated expansions in George Lucas's galaxy far, far away. This partnership not only introduced key characters and lore but also elevated Nelvana's status in the animation world, blending Canadian creativity with Hollywood's sci-fi epic.
The Spark: The Star Wars Holiday Special's Animated Gem
The collaboration kicked off in 1978 with the infamous Star Wars Holiday Special, a variety show that has become a cult curiosity despite its overall poor reception. Impressed by Nelvana's 1977 special A Cosmic Christmas, Lucas commissioned the Toronto studio to produce an approximately 10-minute animated segment titled "The Story of the Faithful Wookiee" (also known as "The Faithful Wookiee"). Written by Lucas himself and directed by Clive A. Smith, one of Nelvana's founders, the segment featured a distinctive animation style inspired by French artist Moebius, as per Lucas's request.
In the story, Luke Skywalker, Han Solo, Princess Leia, and Chewbacca crash-land on the watery planet Panna after a run-in with Imperial forces. They encounter the bounty hunter Boba Fett, who initially appears as an ally but is revealed to be working for Darth Vader. Voiced by Don Francks, Fett's debut here—complete with his iconic Mandalorian armor based on early, unpainted concept designs from The Empire Strikes Back—marked the character's first on-screen appearance, teasing his role in the upcoming film. Nelvana even suggested scuffing up Fett's costume for a more lived-in look, influencing his final live-action design.
Despite the special's campy live-action segments and overall criticism, the animated portion stood out as a highlight, offering fans a glimpse into Star Wars' expanded universe. Today, it's available standalone on Disney+ as The Story of the Faithful Wookiee, preserving this piece of Star Wars history.
Expanding the Galaxy: Star Wars: Droids
Building on this success, Lucasfilm rehired Nelvana in 1984 to produce Star Wars: Droids: The Adventures of R2-D2 and C-3PO, aiming to elevate Saturday morning cartoons with higher production values. The series premiered on September 7, 1985, on ABC as part of the Ewoks and Droids Adventure Hour, running for one season of 13 episodes, plus a one-hour special, The Great Heep, aired in June 1986.
Set around 15 BBY—between Revenge of the Sith and A New Hope—the show follows the droid duo as they bounce between masters, encountering aliens, pirates, and Imperial threats across the galaxy. Episodes drew inspiration from sci-fi like Moebius's The Airtight Garage, featuring action-packed stories with humor and adventure. Anthony Daniels reprised his role as C-3PO, often rewriting dialogue for authenticity, while R2-D2's beeps were handled by sound designer Ben Burtt, who also wrote several episodes.
Production was ambitious, with Clive A. Smith overseeing animation in Korea, requiring up to 24,000 cels per episode and costing $500,000–$600,000 per hour-long block. Despite this, high costs led to cancellation after one season. Reception was mixed; some fans appreciated the droids' backstories, but continuity issues (like multiple masters before Captain Antilles) required retcons in later Star Wars media. Elements like the Boonta race and characters like Admiral Screed have been referenced in Expanded Universe works, influencing games and comics.
Furry Adventures: Star Wars: Ewoks
Airing alongside Droids, Star Wars: Ewoks (later The All-New Ewoks in Season 2) targeted younger audiences, debuting on September 7, 1985, and running for two seasons totaling 26 weekly episodes and 35 animated segments. Set before Return of the Jedi on Endor's forest moon, it follows young Ewok Wicket W. Warrick and his tribe in Bright Tree Village, battling villains like the witch Morag and the rival Duloks.
Themes drew from mythology, fairy tales, and nature, inspired by works like The Lord of the Rings and Joseph Campbell's hero's journey, emphasizing community and magic in a primitive Ewok society. Voice cast included Jim Henshaw as Wicket in Season 1, replaced by Denny Delk in Season 2, with actors using an Ewokese glossary for authentic dialogue. Production shifted in Season 2, with Lucasfilm taking more control and adding new music and a CGI opening.
Though ratings weren't stellar, leading to cancellation after two seasons due to costs, Ewoks spawned merchandise like toys, comics, and books. Its legacy endures in references in novels like Fate of the Jedi and games like Star Wars Galaxies, and both series are streamable on Disney+ as part of the Vintage Collection.
Nelvana's Star Wars contributions, while constrained by '80s budgets, captured the franchise's spirit and bridged the original trilogy era. Michael Hirsh reflected on the excitement of working with Lucas, which boosted Nelvana's profile immensely. These shows influenced later animations like The Clone Wars, proving Nelvana's lasting impact on Star Wars lore.
The Final Frame: Why Nelvana Shut Down
The news of Nelvana's closure hit like a plot twist no one saw coming, but industry insiders point to a perfect storm of challenges. Reports from employees indicate the studio closed its doors on August 29, 2025, with no official statement from Corus yet. This follows a wave of layoffs and restructuring that began in 2024.
Parent company Corus Entertainment has been grappling with severe financial woes, including a steep advertising downturn fueled by economic uncertainty and the lingering effects of the 2023 U.S. writers' and actors' strikes. In July 2024, Nelvana paused all development and parted ways with VP Athena Georgaklis amid cost-cutting measures. Corus's broader issues include shutting down Disney Jr. and Disney XD channels in Canada by September 2025, signaling a retreat from kids' programming.
Experts cite industry-wide shifts: streaming wars have squeezed traditional animation budgets, while AI tools and offshore production reduce demand for in-house studios. Corruption allegations and executive pay hikes amid layoffs haven't helped public perception. For Nelvana, which integrated its operations into Corus in 2006, these pressures proved fatal.
The shutdown raises questions about ongoing projects like Thomas & Friends: All Engines Go!, potentially leaving them in limbo. Fans mourn the loss of a studio that animated countless childhoods, but its legacy endures in reruns and hearts worldwide.
People Also Ask
What is Nelvana best known for?
Nelvana is renowned for producing classic kids' animations like Care Bears, Babar, and Franklin, as well as its groundbreaking Star Wars cartoons including Droids and Ewoks.
When was Nelvana founded?
The studio was established in 1971 by Michael Hirsh, Patrick Loubert, and Clive A. Smith in Toronto, Canada.
Why did Nelvana shut down?
Financial difficulties at parent company Corus, including ad slumps, strikes, and cost reductions, led to the reported closure in August 2025.
What Star Wars projects did Nelvana work on?
Nelvana animated the Boba Fett segment in the 1978 Holiday Special and produced the 1985 series Droids (13 episodes + special) and Ewoks (35 segments across two seasons).
Is Nelvana's content still available?
Yes, many shows stream on platforms like Netflix, Disney+, and YouTube, preserving the studio's vast library.
Hat Tips
ResetEra thread on Nelvana's shutdown: https://www.resetera.com/threads/nelvana-one-of-canada%25E2%2580%2599s-most-biggest-animation-studios-has-reportedly-shut-down-after-54-years-1974-2025.1286007/
Reddit discussion on Nelvana closure: https://www.reddit.com/r/cartoons/comments/1n658um/welp_nelvana_has_seemingly_shut_down/
Hollywood Reporter on layoffs: https://www.hollywoodreporter.com/business/business-news/nelvana-studio-head-layoff-wave-1235953159/
Wikipedia entry on Nelvana: https://en.wikipedia.org/wiki/Nelvana
Entertainment Junkie Blog history: https://ejunkieblog.com/2022/11/03/the-history-of-nelvana/
List of Nelvana programs on Wikipedia: https://en.wikipedia.org/wiki/List_of_Nelvana_programs
Kidscreen on 30th anniversary: https://kidscreen.com/2001/05/01/30888-20010501/
Wookieepedia on Ewoks series: https://starwars.fandom.com/wiki/Ewoks_%28television_series%29
Lucasfilm official on Ewoks: https://www.lucasfilm.com/productions/ewoks/
Playback on executive departure: https://playbackonline.ca/2024/07/17/athena-georgaklis-to-depart-nelvana-in-corus-layoffs/
Animation Magazine on development halt: https://www.animationmagazine.net/2024/07/nelvana-studios-vp-athena-georgaklis-departs-development-halted-amid-corus-cost-cuts/