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Millionaire board game company hits trouble
Twenty-two jobs are at risk after it was announced yesterday that Claydon based board game company Upstarts has gone into administration.
Founded by Tom White and John Marlani in 1988, Upstarts grew to be one of the largest independent games companies in the YK, enjoying huge success with its Who wants to be a Millionaire? board game.
The administration were called in this week when it became apparent that ongoing cashflow problems due to unsold stock of DVD games last Christmas were not going to be resolved and recent efforts to see the business had failed.
Joint Administrator Andrew McTear of McTear Williams & Wood in Ipswich said “Financial problems had occurred as a result of poor Christmas trading when the company was adversely affected by the national downturn in sales in DVD games.”
“In 2005 the company benefited from being one of the first players in the DVD games market but in 2006 the market was saturated and the company failed to meet its sales forecast.”
He added that in 2005 there were only around 25 DVD games in the market but his had grown close to 250 games the following year.
“Upstarts had a good year in 2005 as they had great products in a good market” he said “They were expecting 2006 to be bigger still as the market moved towards the DVD games format, but what happened was that everyone jumped on the bandwagon and there was a lot of competition and consumers were confused as to which products were good and bad.”
“They were left with huge quantities of unsold, slow moving stock which hit their cashflow.”
Joint owner Mr White said the company’s success in the past was based on its ability to license the rights of popular TV programmes, such as Who Wants to be a Millionaire?” and Bullseye and turn them into games. IT had also developed a number of its own brands, including the Gross brand of practical jokes.
Upstarts will continue to trade while a buyer is sought for the business and assets as a going concern. However, given the seasonal nature of the games market, with sales predominantly between August and November ahead of Christmas trading, Mr McTear said a sale would need to be agreed within a month as orders for pdocuts to manufacturers in the Far East involved long lead-in times.
“We need to get a deal done so that the purchaser has the time to get listings with distributors and place the orders.”
He added that the firm’s directors had been in talks with several parties regarding a sale, and two have already approached the administrators.
Staffing levels are currently being reviewed and it is likely some jobs will go ahead of any sale, however, Mr McTear said the administrators hoped to preserver as many jobs as possible.
East Anglian Daily Times
26 April 2007