10tacle declares insolvency but UK studio is 'unaffected'

10tacle declares insolvency but UK studio is 'unaffected'
Michael French

By Michael French

August 7th 2008 at 2:36PM

Germany HQ'd studio network runs out of cash, but UK racing team Blimey still operating

German games development firm 10tacle, which owns a number of studios across Europe, has declared insolvency - but its UK studio Blimey says its parent firm's financial crisis won't affect it.

In a short official statement, 10tacle confirmed a report in the German financial press that said it had run out of money. Investors in the company are to be notified of the situation, although after that it's not yet known what the future of 10tacle will be, whether it will close or look to debt restructuring.

Only last week, the firm announced it had secured at €6m investment.

10tacle owns studios in Hungary, Singapore, Germany and other territories - including its racing studio Blimey in the UK. A year ago it even bullishly claimed it planned by UK studio Climax - although that turned out to be false and was denied by Climax chief Karl Jeffery.

And while questions over 10tacle's future are raised, the management team at Blimey has been quick to say the potential collapse of 10tacle won't harm it.

A statement from Blimey reads: "Blimey! Games Ltd would like to announce their continued growth and healthy balance sheets, despite 10Tacle’s recently declared insolvency. We at Blimey! Games would like to announce that this will in no way affect our company, or our products.

"Work on our Ferrari project continues, and we have also recently signed an unannounced but major brand for a top publisher. Our studio has recently taken on many new staff and we are very happy to be working on several upcoming and exciting projects."

A comment from Ian Bell, CEO/creative director of Blimey added: “Despite 10T’s unfortunate and recently announced insolvency, Blimey! Games is in a very strong position.

"We have recently signed an unannounced major project for a top tier publisher which secures our continued growth, and our Ferrari title remains unaffected. Work will continue as normal at our studio.”

A rep from Blimey told Develop that the studio remains independent and open to work with publishers.