Starbreeze CEO resigns as studio files for reconstruction after “shortfall of cash”

Starbreeze Starstream

Starbreeze has filed for reconstruction with the Stockholm District Court. This decision has been made with the acknowledgement of Overkill’s the Walking Dead’s poor sales.

In an press release available on the studio’s official website, Starbreeze explains the reasoning behind the reconstruction. “The decision is based on a shortage of liquidity and deemed to be a necessary step to give the Company the time needed to negotiate a long-term financial solution and implement changes in the organization and operations.”

After the poor commercial sales of Overkill’s The Walking Dead, Starbreeze slashed the price tag of the first-person zombie shooter from $60 down to $30 in an effort to push sales. Starbreeze reported lower than expected sales in November but the sales figures must have been worse than expected.

“With the latest statistics from Overkill’s The Walking Dead (including effects from latest marketing efforts) affecting the forecasted sales, it has reduced the short term forecasted revenue resulting in an expected shortfall of cash in January 2019,” Starbreeze said.

The Starbreeze press release says the board of directors have reviewed the companies situation and has created a program to cut costs and focus on its “core business”.

“The reconstruction framework will include salaries to employees of Starbreeze and operations will continue as usual. During the reconstruction period, no payments can be made to suppliers for services or goods relating to the period prior to the date of filing for reconstruction. Suppliers will be paid for services and goods provided during the reconstruction period.”

Starbreeze end the statement with the news that Bo Andersson will leave his position as CEO and Andersson and Kristofer Arwin have resigned from the Starbreeze Board of Directors.