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Eurocom ceases trading, all jobs lost

Eurocom ceases trading, all jobs lost

Fri 07 Dec 2012 12:57pm GMT / 7:57am EST / 4:57am PST
Development

Derby developer enters administration after quarter century

Derby developer Eurocom has entered administration and ceased trading, with a resultant loss of all remaining jobs.

Last month the studio was forced to let the majority of its staff go after intervention from the HMRC, who deemed that the company had insufficient funds to continue trading with the number of staff it employed.

Today, a statement from administrators issued to Eurogamer revealed the true extent of the developer's financial woes.

"As a result of pressure from HMRC, the directors of Eurocom filed a Notice of Intention to Appoint an Administrator at Court in order to allow time for attempts to save the Eurocom business," the statement reads.

"The Administrator and the company's directors have been negotiating with customers surrounding new contracts to develop console games, however these contracts could not be secured in time and due to insufficient funds to pay outstanding wages, Eurocom today entered Administration.

"As a result, the remaining 42 employees have been made redundant today and the business has ceased to trade after some 25 years, having grown organically to become one of the largest and most prolific independent console games developers worldwide.

"The Directors of Eurocom would like to offer their heartfelt thanks to all their staff that have been made redundant at this difficult time, and show their appreciation of all of their hard work in consistently delivering exceptional games."

“Whilst this is unfortunately the end of the established Eurocom business, efforts are continuing behind the scenes to attract interested parties to Derby in order to help fill the void left by Eurocom," the administrator continued.

"We are still hopeful that there will in the future be a specialist software business operating in Derby in place of Eurocom, but the focus will be completely different and therefore this is sadly the end of the console games development business."

12 Comments

Chris Sweetman Sound Designer/Audio Director

20 22 1.1
Popular Comment
So they have been trading insolvent for a while and the HRMC took them to task.
To be honest poor form from all the directors concerned.
Allegedly they have not paid nearly 200 staff wages or notice.
This sort of practice seems all to commonplace and I for one want to see it stamped out.
Redundancies are unfortunately a part of a lot of industries and happen frequently, but the staff are compensated properly, which did not seem to happen in this case.

Edited 1 times. Last edit by Chris Sweetman on 7th December 2012 1:35pm

Posted:A year ago

#1

Bruce Everiss Marketing Consultant

1,692 594 0.4
Terrible for all involved. Especially at this time of year.
Let's hope they quickly find suitable further employment.

Posted:A year ago

#2
Hi Dan, you reported that you'll be following up on the rumours about whether the employees are being paid - do you still plan to do this? It's been a week now.

Posted:A year ago

#3

John Bye Senior Game Designer, Future Games of London

484 455 0.9
*COMMENT DELETED*

Contrary to what I posted in my original comment, which was based on reports at the time of the studio's closure, I've now been informed that staff from Rebellion Derby were paid when the studio was shut down. If that's the case, I'm happy to remove my original comment, and apologise for any offence caused.

As I previously said, regardless of what has happened at Eurocom, I hope this isn't the end of game development in Derby, and best of luck to all those effected.

Edited 2 times. Last edit by John Bye on 7th December 2012 5:15pm

Posted:A year ago

#4

Dan Pearson European Editor, GamesIndustry.biz

119 368 3.1
@Barry - we've been trying to follow this up, but the information firewall thrown up by the administrators and management has meant that we've not been able to ascertain enough information to write it up confidently. It's not something we've abandoned, however.

Posted:A year ago

#5

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,282 2,479 1.1
Such a sad state of affairs for all involved.

Hopefully they'll find adequate employment in short order.

Posted:A year ago

#6

Bjorn Toft Madsen Studio Development Director, Rare Ltd.

3 1 0.3
Feel awful for the Eurocom guys. Never a good time, but leading up to Christmas it still feels particularly bad. A crying shame.

There are open roles at Rare and we are of course interested in speaking to the people that have been let go.

Posted:A year ago

#7
@Dan does talking to employees constitutes confirmation? I imagine it would be easy to get in contact with some of them - people on this board might be able to help etc.

Posted:A year ago

#8

Tommy Thompson Lecturer in BSc (Hons) Computer Games Programming., University of Derby

44 28 0.6
Good luck to all those affected. Fingers crossed new opportunities in and around Derby present themselves to you all.

Posted:A year ago

#9

Paul Johnson Managing Director / Lead code monkey, Rubicon Development

925 1,560 1.7
Grim news, I used to live up there so could easily have been one of those guys. Why does this shite always seem to happen just before christmas. :s

Got redundant once myself but at least they had the good grace to survive until January!

Posted:A year ago

#10

Peter Dwyer Games Designer/Developer

482 293 0.6
@Paul,

I said the same in a different thread about redundancies. Christmas is simply the worst time to do this to someone. Granted companies have to make tough choices but, common decency should dictate that these things are planned with some compassion. I'm sure a director or two could take a lesser bonus to at least pay the employees up until January!

Posted:A year ago

#11

Paul Johnson Managing Director / Lead code monkey, Rubicon Development

925 1,560 1.7
@Peter, I absolutely agree with this. Even the kinda money floating around in a company as small as ours could be stretched to one more month with a little warning. It shows a complete lack of compassion, nothing else.

I'm sure the management had plenty of other things to worry about, but not screwing the people who kept you going should be right up there.

Posted:A year ago

#12

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