Starbreeze AB announces they have filed for reconstruction as they seek to
avoid bankruptcy amid "a shortage of liquidity" (thanks
Gamasutra). They anticipate a cash shortfall next month, admitting that
Overkill's The Walking Dead is underperforming at retail, so they are buying
time to "negotiate a long-term financial solution and implement changes in the
organization and operations." The announcement includes word that Bo Andersson
is stepping down as CEO and that both Andersson and Kristofer Arwin have
resigned from the Starbreeze Board of Directors. Here are the details:
Starbreeze
AB (publ) (“Starbreeze” or the “Company”) announces that the board of Starbreeze
AB (publ) and the boards of the Company’s Swedish subsidiaries Starbreeze
Publishing, Starbreeze Production, Starbreeze Studios, Enterspace and Enterspace
International, have today filed for reconstruction with the Stockholm District
Court. The decision is based on a shortage of liquidity and deemed to be a
necessary step to give the Company the time needed to negotiate a long-term
financial solution and implement changes in the organization and operations. The
financial targets for Q4 2018 and 2020 no longer applies.
As communicated on 23 November 2018, the board of directors has mandated
executive management to review operation and the company has initiated a program
to lower costs and focus on its core business. However, with the latest
statistics from Overkill’s The Walking Dead (including effects from latest
marketing efforts) affecting the forecasted sales, it has reduced the short term
forecasted revenue resulting in an expected shortfall of cash in January 2019.
The reconstruction framework will include salaries to employees of Starbreeze
and operations will continue as usual. During the reconstruction period, no
payments can be made to suppliers for services or goods relating to the period
prior to the date of filing for reconstruction. Suppliers will be paid for
services and goods provided during the reconstruction period. As also announced
today, Bo Andersson will leave his position as CEO. Bo Andersson and Kristofer
Arwin have further resigned from Starbreeze Board of Directors effective
immediately. Reconstruction would not entail any other changes to the management
or the Board of the company of the Company who will continue to be responsible
for its operation.
Nozon, Parallaxter, Starbreeze LA Inc, Starbreeze USA Inc, Starbreeze Paris,
Starbreeze Barcelona, Starbreeze IP LUX, Starbreeze IP Lux II Sarl and Dhruva
Infotech Ltd could be indirectly affected by the reconstruction since they are
partly funded by the Company. Other companies within the group are not affected
by today’s decision.
The Company has suggested Mr. Lars Söderqvist from WSA Law firm as
Administrator.