Nacon SA has filed for insolvency and is asking French courts to open judicial reorganization proceedings.
The Lesquin based company makes video game peripherals and publishes video games. It has published Robocop: Rogue City, Test Drive Unlimited: Solar Crown and Frogwares’ Sherlock Holmes games.
In their press release, Nacon explained that its majority shareholder Bigben Interactive isn’t able to make its latest bond loan repayments “following an unexpected and late refusal by its banking pool.”
To skip the legalese, Nacon applied for judicial reorganization because they have stopped paying their employees, citing Bigben’s issues with bond loan payments.
Under this process, Nacon can continue to keep operating momentarily while the French courts decide the best course of action.
The courts can mandate an installment plan, or selling assets and liabilities. French labor law has protections for wages and entitlements, but there’s no guarantee workers won’t be fired.
Sadly this news comes months after Nacon just acquired the WRC racing video game license from Codemasters, which itself had huge layoffs.
We wish the best for Nacon and their employees.