Published: 17th September 2010
Efforts by joint administrators from business and restructuring specialist Begbies Traynor to rescue video games company Realtime Worlds in Dundee along with its “cops and robbers” APB game platform have been unsuccessful, it was confirmed today (Friday).
The announcement comes in the wake of the joint administrators announcing that Realtime Worlds’ Project: My World had been sold to an undisclosed buyer with the saving of 23 jobs.
“After an accelerated diligence process the interested parties made it clear that the sale of APB as a going concern and ‘live’ operation is fraught with too many unknowns and therefore not a viable proposition, this regrettably means the closure of the Dundee studio,” said joint administrator Paul Dounis.
He added: “We very much regret not being able to find a buyer for APB and by doing so safeguard jobs. Every possible attempt was made to achieve this but in the end no one was prepared to take the game on in its present form, along with unknown problems which they might then encounter.
“We are now looking to try and conclude a sale of the intellectual property rights and platform upon which the game has been built over the next few weeks. There may then still be an opportunity to minimise some of the job losses. We will be continuing to do everything possible to this end.”
Mr Dounis confirmed that 50 employees, whose jobs had been kept open while discussions took place with potential buyers over the past four weeks, had been served with redundancy notices, although seven will be retained on a short-term basis while the operation is wound down.
Initially, there had been interest from around 300 potential buyers but discussions had finally focused on six and talks are likely to continue with them in the coming days as to the possible sale of APB intellectual property rights.
Industry pundits have blamed lacklustre sales of APB, a five-year project which cost over $100m dollars to launch, for the company going into administration. Realtime Inc, the company’s US satellite office in California, is now likely to apply for Chapter 7 protection.
Ken joined the Glasgow office of Begbies Traynor in 2003, before overseeing the firm's expansion into further offices in Edinburgh, Dundee, Aberdeen and Belfast. He previously worked at KPMG, Ernst & Young and PricewaterhouseCoopers in Scotland. He has a broad range of experience in Corporate Rescue and Recovery, as well as in turnaround and restructuring, corporate and personal insolvency, investigations and IBRs.
Specialisms: Licensed trade, haulage, property investment/development, construction, agriculture engineering/manufacturing.