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Game Developer Acclaim Lays Off 600, Will File for Bankruptcy

Authored by Mark Hefflinger on August 31, 2004 - 10:08am.
Glen Cove, N.Y. -- Struggling video game developer Acclaim Entertainment has laid off all 600 of its employees and will file for Ch. 7 bankruptcy on Tuesday, according to various published reports citing sources within the company. Acclaim was unable to renew its loan with GMAC Commercial Finance, and unsuccessful in locating an alternative $65 million loan. Company CFO Gerald Agoglia told employees at the company's Glen Cove, N.Y. headquarters of the news late Friday, IGN.com reported; Acclaim also operated development studios in Austin, Texas and Manchester and Cheltenham in Great Britain. The company will not publish titles such as "The Red Star" and "Juiced," which were slated for release in September. Acclaim has suffered weak sales of its titles over the past year, and was also compelled to restate results from the past three years after discovering an accounting error. Acclaim shares were delisted from the Nasdaq last week after failing to meet Nasdaq requirements.
http://pc.ign.com/articles/543/543191p1.html  http://www.gamespot.com/news/2004/08/31/news_6106146.html
http://www.acclaim.com

tags: Games | Acclaim | File | Bankruptcy |



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