Crisis and Diversification
Despite backing some excellent films, Rank was in crisis by 1949, having built up a debt of £16 million. and reported an annual loss of £3.5 million, Managing Director John Davis cut staff, reduced budgets and concentrated film production at PInewood. Other studio facilities (in Islington) were closed, sold (Lime Grove Studios) or leased (Denham). The Rank Organisation closed Independent Producers Ltd. The policies of Davis alienated many in the industry, in particular they led film director David Lean, responsible for some of Rank's most critically and financial successful films, to look elsewhere for backing.
In 1949, the company bought the Bush Radio manufacturing facility and began to diversify its interests. In the early 1960s Rank took over Murphy Radio to form the Rank Bush Murphy Group (which was eventually sold to Great Universal Stores in 1978). In 1956 Rank began a partnership with the Haloid Corporation to form Rank Xerox. Rank was also a significant shareholder in the consortium which became Southern Television, the first ITV television contract holder for the south of England. In the late 1950s, Rank set up Rank Records Ltd. (the record label was named Top Rank) and Jaro Records (a jazz subsidiary). In 1961, Top Rank was taken over by EMI, and in 1962 they replaced it with Stateside Records.
Rank Audio Visual was created in 1960, bringing together Rank's acquisitions in multimedia, including Bell and Howell (acquired with Gaumont British in 1941), Andrew Smith Harkness Ltd (1952) and Wharfedale Ltd (1958). Subsequent acquisitions included Strand Electric Holdings (1968) and H.J. Leak & Co. (1969). In the mid and late 1970s Rank Audio Visual made a 3-in-1 stereo music centre, as well as TV sets in conjunction with NEC of Japan. The production of the "classic" Rank TV ran in the mid to late 70s, some interim models appeared and the "modern" Rank TV appeared in the early 80s. The NEC badge did not appear in the PAL/ 220/ 240 volt countries until the mid 1980s.
J. Arthur Rank had stepped down as Managing Director of the Rank Organisation in 1952, but remained as Chairman until 1962.
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