James Bond developer, Eurocom, lays off remaining staff and heads to administration
Eurocom, developer of such James Bond games as the 2010 Wii version of GoldenEye 007 and this fall's critically slammed 007 Legends, has hit on hard times, leading to a massive layoff of most of its staff of 150 last month after quite a few projects fell through.
Today, the developer let go of its remaining staff and entered administration in order to get some help. This has resulted in Dean Nelson, of UK advisory firm Smith Cooper, being appointed administrator of the studio.
In a statement issued to Eurogamer, Eurocom revealed that, due to pressure from the UK's Revenue & Customs, the company decided to file its intention to appoint an administrator in the hope of buying enough time for the developer to save its business. Unfortunately, it was unable to secure the contract negotiations with potential clients in time thanks to “insufficient funds”, leaving Eurocom no choice but to enter administration.
“It looks like they were unable to rescue the company,” one former Eurocom employee told Eurogamer. “A sad end to 25 years of development.” Indeed, it is a sad way to go. Hopefully, the laid-off staff will soon be able to find new, and profitable, ventures to pursue.
You can take a look at Eurocom's statement in its entirety below:
Today Dean Nelson, from Midlands business advisory firm Smith Cooper, was appointed Administrator of Eurocom Developments Limited, who have been experiencing financial difficulties due to expected contracts being delayed, which has resulted in a severe cash flow shortage.
Since 2008, there has been a steep decline in the sales of Console and PC games, which has led to a severe contraction in the number of new games being commissioned from global publishers of entertainment software. The company has also faced intense competition from developers in countries with lower costs or those subsidised with generous games tax credits.
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 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.
A writer, journalist, and aspiring storyteller, Peter Grimm has been gaming since the days of the Nintendo 64, and reporting on the goings-on in the World of Gaming since late 2011. His base of writing operations is located within the void between Here and There, or so he would have you think.
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