Reviving a Cloth Cat: How Threewise Harnesses Intellectual Property as a Property Investment
A New Chapter in a Classic Tale
Many people in Britain grew up watching Bagpuss, the saggy old cloth cat who came to life when children weren’t looking. Created in 1974 by the legendary animation duo Oliver Postgate and Peter Firmin, Bagpuss quickly became a household name. In a BBC poll celebrating the nation’s favourite children’s series, this gentle animated show was crowned the No. 1 children’s series of all time and Bagpuss was voted the public’s favourite children’s creature character ahead of global icons like Tom & Jerry and Winnie the Pooh. The brand’s longevity is remarkable: not only does the original animation library retain copyright protection for another 62 years, but generations of viewers continue to hold the cat close to their hearts.
Fast forward to today, and a new company is breathing fresh life into this heritage. Threewise Entertainment, founded in 2020 and headquartered in Birmingham, is a kids and family CreaTech company that fuses storytelling with technology. Led by producer Michael Ford, the studio has already partnered with the BBC and Nickelodeon on live action programmes, and it has expanded into interactive and immersive entertainment via the Coutts Interactive Entertainment Accelerator. Recognised by the UK screen sector trade body as a Future30 indie with the potential to become a game-changer, Threewise is now poised to unlock the hidden value of intellectual property in a way that mirrors real estate investing.
Intellectual Property as Property
Threewise believes that iconic children’s characters can be as solid an investment as bricks and mortar. Just like traditional property investment, where investors seek assets with steady rental returns and capital appreciation, intellectual property (IP) can generate recurring licensing royalties and appreciate over time as a brand grows in popularity. The company likens copyright protections to long-term leases: Bagpuss and the wider Smallfilms collection are protected until 2088, ensuring decades of potential income.
At the heart of this vision is Threewise Merch, a new licensing and merchandising subsidiary that will hold exclusive merchandising rights for all IP developed or managed by its parent company. By controlling both creative production and the downstream exploitation of those creations, Threewise sits at the intersection of a developer and a sales and letting agent except that its property consists of beloved characters, not buildings. The parallels with residential and commercial property development are deliberate. Each show or character is treated like an investment property: you acquire or build it, refurbish and extend its appeal through new stories, then rent it out via licensing deals or sell merchandise to fans.
Why Bagpuss? A Brand Built on Nostalgia and Possibility
The jewel in Threewise’s crown is Bagpuss, and the company has secured licensing and merchandising rights that give it the ability to craft new content and consumer products around the brand. The Smallfilms heritage brand comes with an existing fan base and strong cultural recognition. The original show’s directors also created the iconic series The Clangers and Ivor the Engine, which gives Threewise access to a broader portfolio of beloved classics. By relaunching Bagpuss through new media adaptations and leveraging nostalgia among adults while introducing the brand to today’s children, Threewise is positioning itself to capture demand across multiple generations.
Nostalgia isn’t the only driver. The global licensing and merchandising market for entertainment and character brands is enormous. Industry research cited by Threewise notes that total licensed merchandise sales reach £271 billion annually and continue to grow at roughly 3.7 % per year. Entertainment and character licences represent the largest slice of that market about £110 billion, or 40.5 %. Within this segment, franchise and classic characters account for roughly 77 % of revenues. The company believes that modern kids the so called Generation Alpha represent a £4.2 trillion economic footprint by 2030. These figures illustrate why reviving a classic cat from the 1970s isn’t just an exercise in nostalgia; it’s a calculated move into a market with significant growth potential.
Threewise’s first aim is to leverage Bagpuss in the licensing and merchandising (L&M) space. The company plans to sign third party licensing deals with retailers and brand partners while simultaneously developing its own first party product lines. Merchandise will include heritage kidult collectibles for adult fans, clothing, games, cuddly toys and other children’s products. Early-stage forecasts from third party licensees already project £3.1 million in wholesale revenues over three years from just five product lines. By investing directly in manufacturing and print on demand capabilities, Threewise hopes to unlock seven and eight figure revenues across both B2B wholesale and direct to consumer e-commerce.
Traction and Forward Sales
Threewise has not waited for the relaunch to generate interest. The company already works with established third-party licensing partners whose products are sold through major UK supermarkets, Argos, Primark, Oxfam, Waterstones, John Lewis and other independent and international retailers. New licensing deals signed for the period 2026–2028 include minimum guaranteed revenues in the five-figure range and average royalty forecasts of £300 k +. These contracts indicate that retailers and licensees see Bagpuss as a valuable asset that can generate recurring income.
Beyond licensing, Threewise is preparing for the first party merchandising opportunity. Retailers estimate that the five initial product lines alone could deliver more than £3 million in wholesale revenue over three years. By taking control of production, the company expects to capture a larger share of profit margins and cross-sell directly to consumers via e-commerce channels and social-media shops.
A Global Vision
Threewise’s ambitions aren’t limited to the UK. While the primary market is the UK and Ireland, the company already has secondary brand sales in the EU, Australia and China, and licensees are expanding the hero cat brand into Japan and the Middle East, with the USA to follow. Such international reach is vital for a character brand because it spreads risk across markets and allows for sustained revenue over many years. The company also plans to add more heritage characters from the Smallfilms library, such as Ivor the Engine, Noggin the Nog and The Pingwings into its portfolio, turning Threewise Entertainment into an IP developer akin to a property developer who renovates and leases multiple buildings.
A Three-Pronged Revenue Model
In its Investor Bulletin, Threewise summarises its revenue strategy as Three Wise Ways We Will Make Money Like Disney. The first pillar is direct to audience sales, which will be driven by e-commerce and social media shops with products such as plush toys, apparel, collectibles and digital downloads. The second pillar is direct to retailer sales, leveraging international manufacturing and free on-board shipping to supply homewares, gifts, pet accessories, apparel and games to wholesalers. The third pillar is brand licensing: partnering with other companies that have their own audiences to create co-branded products and marketing collaborations. By combining these three approaches, Threewise aims to diversify its income streams and capture value at every point in the supply chain.
Future Developments and Heritage Conservation
The Corporate Investment spreadsheet provided by Threewise outlines a longer-term vision for building a media group with multiple subsidiaries. Threewise Entertainment currently holds about 62 % of the company’s shares, with founder Michael Clifford also known as Michael Ford owning the majority stake. The plan is to create a Threewise Merch subsidiary, funded by outside investors, that will control all licensing and merchandising rights for the Smallfilms collection while allowing Threewise Entertainment to focus on content production. The spreadsheet also hints at future acquisitions, such as buying portions of Smallfilms Ltd. and the Peter Firmin Partnership. These investments would give Threewise direct ownership stakes in the underlying IP rights to classics like Ivor the Engine and Noggin the Nog. The company has even explored acquiring Hillside Farm, the Firmin family’s historic property that houses original puppets and sets, to develop it into a screen tourism attraction similar to Beatrix Potter’s Hill Top Farm which reportedly generates more than £1 million in visitor revenue each year. Such assets not only preserve Britain’s animation heritage but also create new revenue streams through merchandise, tourism and live events.
Why Investors Are Taking Notice
Although Threewise hasn’t publicly announced a full investment round, the investor bulletin suggests that the company will offer two types of investment. A leasehold option targets a 30 % return over a two year fixed term, while the freehold option offers shared ownership with uncapped equity. The company is preparing to raise up to £250,000 in a seed round for Threewise Merch, issuing shares priced at £25 k each. The proceeds are earmarked for working capital, international IP trademarking, product development, an e-commerce launch and social-media marketing. Though these numbers are presented in an investor bulletin and not a public solicitation, they signal a clear growth plan and a commitment to transparency.
Threewise’s early results have already attracted external interest. In 2024, the company secured a six-figure funding package from BCRS Business Loans, enabling it to expand into licensing and merchandising for Bagpuss. Subsequent press reports highlight how the financing has accelerated the company’s plans to develop a feature length Bagpuss film and grow its merchandising business. As one trade article notes, Threewise Entertainment sees Bagpuss as a classic British heritage brand with untapped potential and aims to deliver a modern feature film adaptation while growing the brand globally.
Looking Ahead
Threewise Entertainment is not just reviving a beloved cat, it is building a business model that treats intellectual property as a long-term asset, comparable to bricks and mortar. The company understands that audiences crave stories and characters that endure. By combining that heritage with modern production, digital distribution and a sophisticated licensing strategy, Threewise is setting itself up for sustainable growth. The next few years will likely bring new Bagpuss content on screens, toys in stores and collaborations with brands across the world. For those who recall the warm, sleepy purr of the saggy old cloth cat, it is an invitation to revisit their childhood. For investors looking for assets with long-term copyright protection, broad market appeal and diversified revenue streams, Threewise’s vision offers an intriguing proposition.
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Disclaimer: This article is for informational purposes and does not constitute financial advice or a solicitation to invest.
