Video game company is not all the Rage
Ernst & Young receivers have admitted defeat after finding Liverpool-based video games company Rage was not 'all the rage' in the business community.
Link: Rage forced by auditors to change results
The company, which makes the David Beckham soccer game, went into administration at the beginning of January after falling short of cash because their products were delayed in getting to market.
But Rage’s receivers told the company ‘game over’ on Wednesday evening after finding it impossible to sell the business as a going concern because there was not enough time to resolve the complex legal issues surrounding the transfer of license and intellectual property rights.
Having no income to finance wages, the receivers had to make the majority of Rage’s staff redundant, keeping on only 17 people to help them find ways to sell its intellectual property and the individual game titles.
Receiver Hunter Kelly explained: ‘This is a highly regrettable situation and it is obviously extremely disappointing for all concerned that the legal risks could not be overcome sufficiently to achieve the sales of all or parts of the business as going concerns.
‘Despite the considerable interest we received in the business and our continued efforts, we were faced with increasing complications posed by the number of licence holders and owners of intellectual property contained within the games which made it illegal to hand over or give access to the information to interested parties.’
Last summer, Rage raised £14.5m to finance the development of new games including one featuring Lamborghini and a follow-up to the successful Rocky game.