Facing financial shortfalls, Starbreeze may be forced to shut down this year
Sweden-based developer/publisher Starbreeze may not last the rest of the year as the company faces a financial crisis, according to its latest shareholder report. The troubled launch of Overkill’s The Walking Dead and the subsequent breakdown of Starbreeze’s relationship with Skybound has been a main contributor to Starbreeze’s desperate financial situation.
Starbreeze’s quarterly earnings report for Q1 2019 informed shareholders that the company “currently lacks sufficient secured funds to continue operating for the coming 12 months and a liquidity shortfall is expected before mid-year 2019 if no additional funds are secured.”
Late last year, Starbreeze CEO Bo Andersson resigned as the company faced a cash shortfall following the poor sales of Overkill’s The Walking Dead. Andersson had been accused of insider trading, but was eventually cleared of the charges. The company filed for reconstruction with the Stockholm District Court in order to gain time to “negotiate a long-term financial solution and implement changes in the organization and operations.”
But the situation through the first three months of 2019 hasn’t improved. Starbreeze has sold the publishing rights to 10 Crowns, a historical 4X game developed by Civilization IV designer Soren Johnson, back to Mohawk Games, and closed down a VR park it operated in Dubai.
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