Publishing label Mastertronic, one of the most established publishing labels in the U.K., is closing its headquarters in Cambridgeshire, England, company head Andy Payne confirmed in a recent post on Develop.
Mastertronic, best known for publishing PC and console games including indie titles 10 Second Ninja and Richard & Alice, will also see a reduction of 40 percent of staff as the company leaves the physical games market.
The company previously reached out to creditors earlier this year in an effort to receive support; however, one credit has since sued the publisher over repayment for a loan made in 2013.
"To be taken to the brink of being wound up and then suddenly told we were being granted more time, stinks of brinkmanship and it has not impressed me or my remaining team all of whom were told last week that they were under threat of redundancy," Payne said.
"We knew that the business models we had been supporting were becoming unsustainable for us and some of our partners," Payne added. "Yes, we had to ‘leave money on the table' and walk away from some of the nonsense deals that we were offered.
"So, we decided to reduce any reliance on retail packaged goods and thus in February we parted ways with our retail sales team who set themselves up to fulfil the remaining demand from packaged goods retailers. In our opinion, the business models at retail for packaged goods are simply unsustainable for a company like Mastertronic."
Payne adds that a meeting is scheduled for next month with the company's creditors, with hopes to see them agree to new terms that will allow the company to remain open.