business

Creditors owed £2.2m after games firm collapse

Creditors of video game firm Blitz Games Studios are set for a £2.2 million shortfall after its collapse.

Andrew Oliver, chief technical office and co-founder at Blitz Games

Creditors of video game firm Blitz Games Studios are set for a £2.2 million shortfall after its collapse.

A report from liquidators shows a deficiency of £2.2 million at the Leamington Spa-based firm which closed in September with the loss of 175 jobs.

The bulk of the deficiency is money owed to staff, either through redundancies or wages, but the firm also owed more than £400,000 to creditors.

It ceased operations 23 years after being set up by twins Andrew and Philip Oliver, and the firm played a major part in a gaming revolution in Warwickshire.

The firm collapsed after managers were unable to secure sufficient new investment to sustain the business.

However, the twins took on 50 of the affected staff in a new operation, and the Post reported last month that rivals Codemasters and Rebellion had plans to take on others.

At the time Blitz chief executive Philip Oliver he said: “We have managed to weather numerous storms over the last two decades that have sadly seen the demise of many of our friends and colleagues across the industry, but the run of problems we’ve had to face over the last year is unlike any we’ve seen before. Frustrations with clients, the global economic crisis, and more than our fair share of simple bad luck have all conspired against us and we are no longer able to continue trading.”

The liquidators’ report reveals the firm’s assets were expected to realise about £375,000.

However, after wage arrears and a £314,000 debt with Royal Bank Of Scotland is settled, there is no money left for non-preferential claims.

They include £406,000 for trade creditors, with infrastructure firm Capita Symonds accounting for more than half of that.

The redundancy bill is £562,000, while the firm also owes £804,000 in wages.

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