Financial troubles mount at Playlogic
Losses and legal fight with Koch Media escalate, but publisher denies bankruptcy rumours
Fairytale Fights publisher Playlogic recorded further losses for the first three months of the year, the latest in a trend that has seen the company haemorrhaging money.
In filings submitted to the SEC last month, the publisher revealed it made a net loss of $2.2 million for the period January to March 2010, and admitted that it is also defaulting on weekly loan repayments of €25,000, which it has been obliged to pay since April.
Playlogic claims that one of its main customers, distributor Koch Media, has not paid the company since December 2009, and the publisher is taking legal action for unpaid bills totalling €1.7 million.
The company admitted that to continue to operate for the second quarter of the year, it need to secure financing from third parties, which has not been forthcoming.
"If the Company does not obtain any necessary financing in the next month, we may need to cease operations," said Playlogic in June. For 2009 the publisher reported a full-year loss of $20 million.
Speaking to GamesIndustry.biz, Playlogic's Rick van Beem denied the company was bankrupt but admitted it was "facing tough times". A detailed update on the business is expected before the end of the week - the company website is currently offline.
According to Dutch site Control Online, in-house development studio Playlogic Game Factory in Breda continues to work on a number of projects, including an extension of EyePet for Sony Europe, providing work for around 30 staff. Tweekers.net is reporting that the company is filing for bankruptcy, which would put the 100-plus headcount at risk.
The company has six games in development including Crazy Garage and Young Archaeologist with French developer White Birds, and The Strategist from Canadian outfit Frima.
UPDATE: Playlogic has confirmed it has filed for bankruptcy.