For the third time in a year, Starbreeze asks to extend its restructuring
This is the third time Starbreeze has asked to extend its restructuring period. It seems that it is not easy for the company to stay afloat.
The restructuring at Starbreeze has been going on since last year. It has already been extended twice, and the deadline expires today, September 3. The publisher appealed to the court with a request to postpone the end of the restructuring until December 2019. It will just be a year since Starbreeze is trying to fix things.
The company is cutting costs, reallocating resources and laying off people. At the beginning of the summer, she planned to lay off 25% of her staff (and it was 240 people). Now, according to Acting CEO Mikael Nermark, “the adjustment of the number of Starbreeze has been completed.”
In May, the company sold the Indian studio Dhruva Interactive to the developer Rockstar. The deal brought Starbreeze $7.9 million. Even earlier, she sold the System Shock 3 game back to its developers. Then the same thing happened with Dead by Daylight and Psychonauts 2, writes PC Games Insider.
Despite all efforts, Starbreeze lacks funds. In the second quarter of the year, the publisher’s net income was $16 million. Financial losses reached $1.6 million.
Starbreeze has already announced that it is looking for financial partners who are ready to purchase units that it no longer needs. And although Nermark claims that “restructuring is in full swing” and the company is secured for the near future, the search for long-term financing is still underway. By the way, Starbreeze ended 2018 with a loss of $144 million. So she also talks to creditors.
Earlier, the publisher’s management expressed fears that Starbreeze would not survive this year.
Also on the topic:
