"Games Workshop going Bankrupt? " Topic

I heard from my local Hobbytown that they were getting calls from GW asking for financial records involved with them or something to that extent. He told me that they said they are going bankrupt. Any other news? I would love for it to go under, and be purchased by real gamers.

This is no joke, but alas I do not know if I can trust one owner. Anyone else have news?

Real gamers don't have the 100's of millions needed. You're dreaming.

Thanks,

John

"I would love for it to go under, and be purchased by real gamers"

Would never happen.

The rumors may have some grain of truth to them, though I think GW will have to go through some major restructuring (i.e. downsizing) first before it goes under. In our extended recession, which is not over no matter what the economists would have us believe, unemployment remains stagnant and companies are tightening budgets. People just don't have the 'disposable income' for the hobby like they used to.

But it'll take a while before GW goes under. They'll try to be more efficient first by reducing their payroll and overhead before declaring total bankruptcy.

Didn't you hear? They've already gone bankrupt and are selling all their assets to Mongoose Publishing!

Oh, wait, the other thing…

I would love for it to go under, and be purchased by real gamers.

Probably the worst scenario imaginable.

"I would love for it to go under, and be purchased by real gamers."

Inmates, assylum and cat herding come to mind.

"The rumors may have some grain of truth to them, though I think GW will have to go through some major restructuring (i.e. downsizing) first before it goes under."

Or they could just raise their prices ;-)

I'm definitely not a fan of GW, but I think if they went under it would be terrible for the hobby. So, get out there and buy Space Marines you 14 year olds!

Mike

As a publicly held company, a bankruptcy for GW would not and could not be a secret.

Well, no bankruptcy is secret, because it is filed with a court and by its nature is public, so that the debtor's creditors can participate.

I think what you may mean is insolvency, which is the inability to pay ones debts as they become due. That's actually often rather hard to measure and quantify.

I suspect another price rise is imminent…..

I would love for it to go under, and be purchased by real gamers.

Do us a favor and define 'real gamers' please!

Well since their biggest costs are their Overhead (I.E. all of their stores) and the Labor (I.E. the people that run them).

They want to cut costs it is a simple thing of closing all of their stores and layoffing all of their workers at the stores.

Then go to online ordering.

spot on Mith.

Someone told me a story once about a 'real gamer' who ran a succesful Gaming Business that made enough for him to live on. He retired to the Channel Islands and spent his days wading in gold dust and cackling.

He was a one-off.

GW run by real gamers heheheheheh, You will be able to tell because the stores will suddenly smell even worse, and then all be closed.

Pat

the share price is rising …

Here is my scenario. GW goes bust, assets are moved into another company which goes bust a few years later. IP is picked up by a big toy company and kiddified into a collectable game with bendy vinyl figures. Everybody then goes melancholy about "the good old days, when GW made proper stuff …"

can you imagine how loud the screaming would be if that happened? I am of the opinion, which i have SWORN never to express on here, that were it not for GW the Wargaming Hobby would be like those people who make battleships out of lolly-sticks – admirable, but negligible. And the quality of the wargames figures we used would be the same as it was in 1975.

Pat

which i have SWORN never to state on here

Oops

If GW goes down its bad for all of us. I am no supporter of GW BUT they bring a huge amount of money in to wargaming and a lot of new blood. If GW dies we are all in the craper too.

Ummmm on secrecy that depends if the US part is a seperate company to the UK, otherwise UK bankruptcy laws would apply, in which case you may not know until closing down signs appear on all the shops etc.

GW publishes financial reports twice a year, you can find them here:

link

The latest one gives their financial situation as of May 30th 2010, and seems to indicate a relatively safe financial situation as far as I can tell.

Why would you want them to go under?

People will lose their jobs, incomes and possibly their homes.

Crikey, I hope Angel Barracks does not make me rich, people will want me to go bankrupt if I am a big success it seems..

Why would you want them to go under?

There has always been a type of gamer that says 'GW are not proper Hobbyists. I hope they go bust so a PROPER hobbyist buys them and sells the stuff really cheap/runs the shops like old fashioned UK Hobbyshops/Lets ME buy my tyrannids cheaper"

add in the 'they are a success – we hates them' and the 'We don't like the people who likle their games, we hates them my precious' types and you have a real witches brew of nastiness.

Pat

Dear Griefbringer.

Looking at the report, they appear to be much healthier than many other companies.

Mick

Just to go back to the OP, I doubt GW would need records from Hobbytown to go bankrupt. I think something else may be up though.

I would love for it to go under, and be purchased by real gamers.

Actually it is, they take gamers and try to make them into sales people, with predicable results.

Probably looking at sales to see if it warrants putting in a GW store.If sales are high enough we put in a store and put that retailer out of business.Then go on to next so that we are the only ones selling GW.Rob

Unfortunately "real gamers" often have no business sense and go under.

I've seen it far too many times.

DM

They might look healthy but have no liquid cash. Always possible I suppose but I would be surprised if there was any truth in these rumours.

They may also be preparing for the new 1099 requirements coming to all of us next year.

The fun just never stops.

DM

They have recently announced a dividend payment to share holders and a bonus payment to all their staff. They have increased their profits on last year despite a slight fall in turnover. Doesn't sound like bankruptcy to me.

They might look healthy but have no liquid cash.

As far as I can read the report, at the end of May they had £17.00 GBP million of "cash and cash equivalents".

Well lets hope for their sake that that a fair chunk of the £17m is actual cash and not tied up. In times past you'd show the healthiness of the company to prove you had means and a bank could help. No bank will give money to someone who has nothing. But the banks ain't lending to anyone at the moment.

Having just read the original post, did he mean Hobbytown are going bust, not GW.

If GW goes down its bad for all of us. I am no supporter of GW BUT they bring a huge amount of money in to wargaming and a lot of new blood. If GW dies we are all in the craper too.

So your saying they are too big to fail…. :)

They just expanded the Forge world line into fantasy, they redoing their stuff in plastic, considerable investments so I would suspect Hobbytown is going under and not GW.

I hope not.
Granted, yea. I still play 40k, but I only buy the new books. I got all the figs I will about ever need.

It is a great company for a "gateway" to new games. That is how I started. Space Hulk, then 40k, then WFB, then Oi! Dats me leg!, then Heroquest, then… well… everything else.

So if its a jumping off point to other, better (and sometimes cheaper) games, then so be it.

I says "keep it up guys!" Good luck!

This thread comes around from time to time. I can't count the number of times I seen "GW is doomed" in various threads. This one is based on nothing more than a second hand rumor heard in a casual conversation. Really?

Mark Twain: "Reports of my death are greatly exaggerated."

"I'm definitely not a fan of GW, but I think if they went under it would be terrible for the hobby."

"The" hobby? I don't know about *your* hobby, but mine was around and doing quite well before there ever was a GW.

Allen

"If GW goes down its bad for all of us".

I doubt it would have much overall effect, except to free up lots of cash, which could be spent on other manufacturers' ranges and products.

Someone else will step in to fill their niche.

Given that their stock price is at a 52 week high, I doubt they are having serious financial troubles.

Regards, the Gorb

I don't think the hobby would suffer, but it would definately be a loss.

They do have their problems. The Eldar Fire Prism comes with optional parts for a Night Spinner, the rules for which were only ever printed in an issue of White Dwarf, which is now sold out. That's crazy, selling an extra half a kit with no rules. Yes, I wanted a Night Spinner and just got off the phone with them asing if there was any way I could get the rules. "Sorry dude, we can't help you."

There are lots of other companies out there who would recieve the available gaming funds from people like us. I still spend money on miniatures and have not spent 5% of that money on GW products. I think the failing of GW would be great for the hobby for many reasons. Will it ever happen…? No, not in the forseeable future. So lets all stop crying about it so much and go spend our money on the many other fine products available…:)

Last time I checked GW was having to operate on loans. I *think* they've pulled themselves out of that situation, but if they have NOT, then they're in a really sucky financial status.

Stock Prices have exactly NOTHING to do with financial health of the company. Look at the value of Ford Motor Company stock from 2007-now, compared to GM and Chrysler. Ford weathered the auto slump fairly well, while GM and Chrysler almost collapsed.

I don't even know what a Night Spinner is, but 5 seconds of Google and …

link

I would love for it to go under, and be purchased by real gamers.

Probably the worst scenario imaginable.

Quoted for Truth.

I want GW to be purchased by people who realize that toy soldiers are NOT a prestige product. While gamers are desirable to have on the *staff*, I want someone with business sense running the company, who understands that it's a leisure activity.

I know very few gamers with business sense.

Last time I checked GW was having to operate on loans. I *think* they've pulled themselves out of that situation, but if they have NOT, then they're in a really sucky financial status.

I can't imagine why you think that's true. Many of the most successful companies in the world have in place credit agreements for years at a time, operating expenses sometimes being the purposes of such loans. Loan agreements often allow a company to expand, or to increase sales or accomodate gaps between trade credit and their retail.

In fact, if you are able to regularly obtain credit, it means that your company is doing well, not poorly, as banks do not generally extend new lines of credit to ailing companies.

Thank you, CATenWolde. I spend most of my online time operating from my phone, which leaves a little to be desired in terms of "search" usage.

I still think it's silly for them to sell a product for their game and be unable to supply rules to go with it. That to me is a sign that they are missing the boat somewhere with their business sense. It *should* be downloadable from their website.

And I remember when GW was run by real gamers, and the total lack of direction and focus they had, and the supply problems, and… they do much better this way.

I think a giant like GW could fall and will probably come back leaner and more web based. It has many overheads for a hobby business and might need to downsize rapidly.

I am sure any gaps in the market would also then be filled with other suppliers. I feel we are in a bit of a "glory days" of gaming at the moment with so many board, war and card games around – it is a crowded market and perhaps one where the traditional store and distribution network is difficult to maintain.