DON’T NOD has received legal protection from creditors amid a lack of funds
The French studio DON’T NOD, known for Life is Strange and Vampyr, is striving to avoid bankruptcy. The company announced that on October 19, a Paris court approved its petition to initiate a judicial protection process (sauvegarde), which will temporarily freeze payments on old debts and provide time to seek funding.
This process, stipulated by French law, is for companies facing serious financial difficulties but that have not yet defaulted on payment obligations. It allows continued operations under judicial oversight, suspends the collection of debts incurred before the procedure, and gives the opportunity to negotiate a financial recovery plan with creditors.
For DON’T NOD, the initial period of judicial oversight will last six months, which can be extended by another six months if necessary. The court also appointed a judicial administrator to accompany the restructuring process.
According to DON’T NOD’s CEO, Oskar Guilbert, the situation in the gaming industry remains challenging, and access to financing is limited. The company's existing funds are insufficient to meet the current business needs and the development of new projects.
“Seeking judicial protection is a preventive measure. It should give us the necessary time and legal tools to find a sustainable solution while allowing us to continue working and preserve our assets, projects, and expertise,” said Guilbert.
App2Top.ru reported on DON’T NOD's issues back in June, and in September, the company warned that without securing additional funds, its operations could be at risk after January 31, 2027.
The situation is exacerbated by financial results. In the first half of 2026, DON’T NOD’s revenue dropped by 14% to €6.1 million, and the operating loss by EBITDA increased from €2 million to €4.3 million. The net loss amounted to €7.1 million. Additionally, the company acknowledged that sales of Aphelion, released in April, fell below expectations.
DON’T NOD continues to cut costs. According to the restructuring plan presented in September, the French division of the company will move to developing only one game at a time. The changes could affect up to 85 jobs. This plan does not apply to the Montreal studio.
To recap, DON’T NOD has been facing financial problems since 2024. At that time, the company reported unsatisfactory sales of Jusant and Banishers: Ghosts of New Eden, suspended the development of two projects, and subsequently began reducing staff.
The future of DON’T NOD will now depend on the results of the restructuring and the company’s ability to secure funding for continued operations.