The CEO of Swedish games and esports company Fragbite Group, Marcus Teilman, has stepped down from his position.
The firm has said that he has asked to leave in order to "pursue new challenges". He is being replaced by current board chair Stefan Tengvall as interim CEO.
“The Board and I thank Marcus for his efforts and his commitment to Fragbite Group during his time as CEO and wish him the best of luck in the future," Tengvall said.
"The Company has initiated a cost reduction programme with the aim of securing a healthy cash flow in both the short and long term. Further examining the costs of the Group and our portfolio companies as well as identifying opportunities for restructuring, thereby enabling increased capital for our profitable underlying core holdings, will be my main focus in the coming period. I look forward to the task as it is something I have done previously in my career. We have a fantastic Group that can become even better."
Alongside this news, Fragbite has declared bankruptcy for developer Fall Damage. Formed in 2017 by veterans of EA's DICE studio, the firm was acquired by Fragbite just seven months ago for $1.9 million. The firm has filed for bankruptcy because it says that Fall Damage has not succeeded in finding a publisher for its debut game Alara Prime.
"Since the fall of 2023, Fall Damage has had multiple dialogues with potential partners regarding the publishing of the game Alara Prime," Fragbite wrote.
"This process has been extensive, involving many counterparts, and despite receiving very positive feedback on the game's quality and potential, the subsidiary has not yet been able to fully complete it within the necessary timeframe. This has led to an unsustainable financial situation. Therefore, it is the assessment of the board that even though these dialogues are still ongoing and the development of the game is on schedule, the subsidiary will not be able to pay its debts as they become due and this inability is not temporary, which is why a decision to file for bankruptcy is necessary."
