Down but not out
Payday publisher Starbreeze is apparently struggling with late. The Swedish game developer has filed for reconstruction due to lack of cash – capital that can almost be converted into cash.
As part of the reconstruction process, Starbreeze has released Bo Andersson, CEO. In addition, Andersson and Kristofer Arwin have given up their seats in the board. Starbreeze has removed its financial targets for the financial years 2018 and 2020 as a result of this restructuring.
While press release does not exhaustively detail what led to this result, it mentions the disappointing original sale of Overkill's The Walking Dead helped put the company in this position. "But with the latest statistics from Overkills The Walking Dead (including effects from last market effort) affecting forecasted sales, it has reduced the short-term forecasts, resulting in an expected loss of cash in January 201
It should be noted that this is not bad for Starbreeze. There is a freeze on outstanding debt to suppliers, but employees will continue to receive paychecks, and the operation will continue as normal. If this tactic is successful, Starbreeze notes that it can "negotiate a long-term financial solution", and ideally, the publisher has humming up again.
Starbreeze AB (publ), including five Swedish subsidiaries, has today filed for reconstruction [Starbreeze]
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