Starbreeze is not doing so well following the release of Overkill’s The Walking Dead.
The PayDay publisher has filed for reconstruction with the Stockholm District Court. Reconstruction is the Swedish term for administration, a legal procedure that uses the company’s assets to repay creditors.
Starbreeze needs a lot of money in a short amount of time which it can either do through investments or by selling its IP.
“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 publisher announced. “The financial targets for Q4 2018 and 2020 no longer applies.”
Starbreeze continues, ” 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,” Starbreeze said.”
In short, Starbreeze isn’t doing well and with the company’s $10 million license fee for the in-development console versions of The Walking Dead not being granted until the end of the current fiscal quarter, they aren’t being granted any favors.
For now, the employees are Starbreeze will be paid their normal salaries, but no payments can be made to suppliers for services or goods. The company’s CEO Bo Andersson has stepped down, with Deputy CEO Mikael Nermark in the role of acting CEO.
With Payday 3 in development and Overkill’s The Walking Dead seeing improvements and new content added, I hope Starbreeze can pull it all back together. However, if investments can’t be found and money can’t be recouped, it might be it for the company.