PayDay 2 and Overkill's The Walking Dead publisher Starbreeze has revealed via its Q1 2019 financials that the company will not last a further 12 months unless additional funds can be found.
Starbreeze had a disappointing 2018, and was forced to restructure following the poor sales of Overkill’s The Walking Dead, and began selling off publishing rights last year, including the rights to System Shock 3 and 10 Crowns. It also laid off 40 of its then 622-strong team.
The Q1 2019 financial report (thanks, MCV) sees Starbreeze acting CEO Mikael Nermark acknowledge that the company is now "in a challenging situation" after it wrapped up the first quarter of the current financial year with a gross loss of 122,773 Swedish Krona ($12.8K / £9.8K) despite an increase in PayDay 2 sales. With a "liquidity shortfall" expected before mid-year 2019, the company may now be forced to close.
"Starbreeze and some of its subsidiaries have been in reconstruction since 3 December 2018," the company wrote in its financial summary. "The company currently lacks sufficient secured funds to guarantee continued operations for the next 12 months and is expected to have a liquidity shortfall before mid-year 2019 if no additional funds are provided. These conditions indicate that there are significant uncertainties that can lead to significant doubts about the company’s ability to continue its business."
"We are in a challenging situation," Nermark added. "I stand united with the entire Starbreeze team in the efforts to get the business in order. We have a very strong asset in Payday, which is the foundation upon which we will build Starbreeze's future."
"My main task is to secure financing for the company’s future operations," the acting CEO added. "This involves both long-term financing we can use to build the Starbreeze of the future, but also making sure that the assets we have determined are unrelated to the core business are managed in a commercially viable way. Once this financing has been secured, we will be able to look ahead and present a more detailed strategy for the future."
When Overkill's The Walking Dead released to a poor reception last year, Skybound Games terminated its contract with Starbreeze Studios, reporting the zombie FPS "did not meet [its] standards nor is it the quality that [it was] promised". According to the company’s Q1 financials, however, it appears Starbreeze "disputes the termination" and is purportedly still attempting to "come to a resolution" with Skybound.
