Studio subsidiary will likely enter administration, firm tells Develop
UK developer Monumental today refuted growing rumours that the firm has entered administration, but revealed its subsidiary group “is technically insolvent”.
The company’s chief operating officer, Paul Mayze, told Develop today that the firm is undergoing restructuring, but claimed that the livelihoods of all thirty staff at its Nottingham base are safe.
“Recently Monumental had to make a number of redundancies in light of an unexpected project cancellation, as a result we’ve had to restructure the business,” Mayze told Develop.
He explained that ‘Monumental Games Ltd’ has served a notice of intent to appoint an administrator, yet its owning company ‘Monumental Games Group Ltd’ will continue trading.
The ‘Monumental Games Ltd’ subsidiary was described by Mayze as “technically insolvent”.
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Despite the significant restructuring, Mayze said “we cannot foresee any redundancies”.
He added: “We’re securing funding for Monumental Games Group to continue trading, and that’s all in the process of being finalised right now.
“We’re going to continue to focus on the areas that we’re already working on. We’ll still have the racing studio, we’ll still focus on our digital online projects, and we still have the Prime engine business.”
In November Monumental began a series of staff cuts at the company following the “unexpected” cancellation of an unannounced project.
The number of staff affected is unknown, though a tip-off which suggested two-thirds of staff will be axed was branded as “nonsense” by an insider.
The news continues Monumental’s rollercoaster year, which in April saw the firm close its Manchester-based offices, while in September was named as the sixth-fastest growing technology company in the UK.
The company made £5.1 million last year, according to data in a Sunday Times survey, though it remained out of profit.
Much of the company’s future is pinned on its new 3D MMO engine, Prime, which Develop understands is gathering strong interest from a number of publishers.
In November the firm appeared at Game Connection in Lyon, France, to publicly unveil Prime to a host of potential partners.
Has this been subbed badly or was it written a couple of months ago? "In November the firm will head to Game Connection in Lyon" - wasn't this three weeks ago?
Have amended the text.
No redundancies..... Apart from the 60 fired last month?
Nonsense:)
... of one that has been put on gardening leave, waiting to be made formally redundant, and I understand that this person is not alone.
Is this Mayze chap saying that "We cannot foresee any redundancies" for "Monumental Games Group Ltd"? Perhaps a factually accurate statement, but if true then incredibly naive - surely he realises how close-knit the development community is, and that people would immediately smell a rat. So who's the statement aimed at - the next round of funders?
I was made redundant, I'm sure that everyone that was, and everyone that wasn't is aware that the company is in trouble. Maybe management should have been up-front about the status of the company; as opposed to saying everything is peachy?
Monumental hasn't been honest since they closed Manchester. Snake Oil sales might be acceptable practice in other communities, but in the development community, Monumental's antics are widely known. If Monumental continues trading, what is the their reported purpose of having a separate group?
"‘Monumental Games Ltd’ subsidiary was described by Mayze as “technically insolvent”.
Sounds as if these chaps are up to something, and time will certainly tell. Let's just hope they do the right thing for all those affected.
No layoffs, apart from the forced mass exodus of November 11th. What a great day that was, sitting at your desk all day, waiting to be given the Envelope of Doom and shown the door.
Monumental (Whatever) Ltd will be dead in the water by spring-time. You can't get rid of most of your staff, and then expect to pull something out of the hat at the last moment.
Is it not what Climax did at the time : split the studio in different "brand" like racing and online, then get rid of the one that does not work? Certainly it is a usual buisness move! Maybe they will keep Monumental Racing, but I understand now that all theses press announcement are just hot air. I mean, September faster growing tech company in the UK, December shut down?
Maybe if all the earnings weren't spent on booze, self patting on backs, and finally lap dancing bars maybe they wouldnt be in this mess. Seems to me like a kid playing with a magnifying glass with ants... Can't wait for the day the ones responsible get trampled on. Firstly on april fools and secondly around Christmas, these people have no shame and ought to be disgraced from the industry! Karma's a b*tch when she wants to be!!
Its not mayzies fault guys! He's just the messenger.
Not heard about the lap dancing but wouldn't surprise me.
Is the head of online still there? Hunter had a look and fear and desperation months ago.
They are not bad chaps at a personal level,
Just made bad decisions.
Bennet is the ahem design "guru" that i feel abit sorry for. He sank some money into the company like a lot of other investors. Thats what i heard anyway.
The mmo tech is really naff. Monumental doesnt have a chance, but you'll see these guys rise agin. If they had any sense they'd have squirrelled away hundreds of thousands away somewhere safe...
RIP monumental
