VFXWorld and C21Media.net are reporting that the Jim Henson's Creature Shop is closing its doors, although TV and film projects would not be affected.
There has been quite a bit of history between ILM and the Jim Henson's Creature Shop. Jim Henson, best known for Sesame Street and the Muppets, was a good friend of George Lucas, who produced Labyrinth. ILM would provide some VFX for Labyrinth and The Dark Crystal. Many Henson puppeteers also worked on George Lucas films, most notably Frank Oz as Yoda, but much of the creature work, like the Jabba palace in Return of the Jedi was done by them as well. You can read the sad news here:
You will be missed but not forgotten.