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Playlogic Isn't OK, Files for Bankruptcy

| 28 Jul 2010 19:00
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Bad games that don't sell, as well as customers who aren't paying what's owed, have forced Playlogic to file for bankruptcy.

It seems like it was just yesterday when Dutch publisher Playlogic was claiming that, in spite of a tough economic environment, it wasn't actually bankrupt. Oh, wait, it was just yesterday that that happened. It turns out that this wasn't entirely the case, as Playlogic has now filed for bankruptcy.

A filing at the US Securities and Exchange Commission revealed that Playlogic has voluntarily signed up for bankruptcy protection. According to the company's board of directors, the publisher (and its development studio Playlogic Game Factory) entered "surseance van betaling", which is the Dutch equivalent of Chapter 11.

After posting a $20 million loss last year &mdash as well as revealing that its largest customer was delinquent on nearly $2 million of invoices &mdash the company had revealed that it was having some major problems and might have to cease operations if it wasn't able to get an influx of cash. However, when GameIndustry.biz asked about the state of the company, "Playlogic's Rick van Beem denied the company was bankrupt but admitted it was 'facing tough times.'"

On top of this, Playlogic revealed a $2.2 million loss for the first quarter. The last two games I played from Playlogic were Infernal: Hell's Vengeance and Fairytale Fights, both of which were pretty bad. While it's always a little sad to hear about a publisher going through troubles like this, it's not exactly surprising given Playlogic's recent track record.

Source: GamesIndustry.biz

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