Starbreeze on the hunt for funding, but Swedish firm could close by as early as next month

Starbreeze on the hunt for funding, but Swedish firm could close by as early as next month

Swedish games firm Starbreeze has said that it currently doesn't have the cash required to continue operations for the next twelve months.

In its Q1 2019 financial report, the developer and publisher said that it expects to be short of liquid cash before the middle of 2019 - i.e. by the end of next month. The company made a loss of SEK 167,284,000 ($17.4m) before tax for the three months ending March 31st, 2019. 

"Starbreeze and some of its subsidiaries have been in reconstruction since 3 December 2018," the company wrote.

"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."

Acting CEO Mikael Nermark has said that his priority right now is securing capital so that the company can continue.

"My main task is to secure financing for the company’s future operations," he said.

"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."

Starbreeze has been in reconstruction since December 2018, after a few bad years marked by bad investments and engine problems. That's on top of Overkill's The Walking Dead failing to hit commercial goals, resulting in IP owner Skybound revoking the firm's license to work on the property.

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.