An inside source reveals the reasoning behind the Jim Henson Company's decision

We just reported that Guillermo del Toro’s Pinocchio has been put on the back burner by the Jim Henson Company. The film’s co-writer, Gris Grimly, tweeted that the box office numbers on Frankenweenie were partially to blame for the studio’s lack of faith in the project.

A source close to one of the parties contacted us with some information on Pinocchio which basically confirms what Grimly said. The source also elaborated on some of the behind the scenes stuff involved. The source wrote: