Company stock price falls by almost 67 percent in the midst of reconstruction.
Starbreeze AB has announced that its board and the boards of its subsidiaries (including Starbreeze Studios, Starbreeze Publishing, and so on) have filed for reconstruction with the Stockholm District Court. Due to “shortage of liquidity”, the filing has been made to provide time for the company to negotiate “a long-term financial solution and implement changes in the organization and operations.”
Following lower than expected sales for Overkill’s The Walking Dead, Starbreeze reduced its short-term forecasted revenue. This will result in a shortfall of cash in January 2019, though the reconstruction will still provide salaries to employees. However, CEO Bo Andersson will be resigning from his position and immediately from the Starbreeze Board of Directors. Kristofer Arwin will also resign from the board.
Currently, the reconstruction will not make for any other changes to management or the Board. It was noted that that Starbreeze USA, Starbreeze Paris, and other companies could be “indirectly affected by the reconstruction since they are partly funded by the Company.” Though things seem stable for now, Starbreeze’s stock price has fallen by almost 67 percent. Hopefully the company will be able to pull through during this difficult time.