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Woolworths closure to cost Ubisoft £1.3m

Woolworths closure to cost Ubisoft £1.3m

Ubisoft is standing to lose more than £1.3 million after the closure of Woolworths.

The credit crunch is now heavily impacting on game publishers and developers, with French publisher Ubisoft set to lose around EUR 1.5 million due to the collapse of Woolworths and its distribution business EUK, says GI.biz.

Ubisoft's Chief Financial Officer said that payment problems for Woolworths was affecting other partners in other areas of Europe and that Ubisoft was being heavily effected.

"Before the Woolworths incident we had two defaults, one in Germany and one in France, for about EUR 3 million, but since we were covered by about 90 per cent the impact for us should be about EUR 300,000," said Martinez in a conference call.

"Woolworths is going to be bigger, probably it's going to be between EUR 1.2 and 1.5 million," he revealed - that's around £1.3 million. Oddly Martinez had previously said Ubisoft felt secure with Woolworths when they received a payment earlier in the year.

"It was not so funny that when we had the last call I was saying that Woolworths was okay, and then they filed five minutes afterwards," said Martinez, further proving that accountants have no sense of humour.

Ubisoft isn't the only company that will lose money from the collapse of Woolworths either, with both Nintendo and Microsoft rumoured to be readying for a substantial loss too.

Have you been directly affected by credit crunch, or are you failing to see what all the fuss is about? Let us know in the forums.

8 Comments

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liratheal 12th December 2008, 14:03 Quote
That's a bit of a bugger, that.
p3n 12th December 2008, 14:26 Quote
Headline made me laugh, especially since the French originally thought they were above all this financial stuff to begin with because they don't 'irresponsibly' lend mortgages etc
Angleus 12th December 2008, 14:42 Quote
I cant help giggling because of 'It's not funny'

Sorry
itazura 12th December 2008, 14:46 Quote
oh, boo hoo.
Goty 12th December 2008, 15:09 Quote
Heh, I say bring the "credit crunch" on. I'm on a fixed income with no debt, it's great for me right now.
[PUNK] crompers 12th December 2008, 15:16 Quote
maybe the shock will jump start them into properly integrating widescreen into their games

then again probably not
lewchenko 12th December 2008, 15:41 Quote
This will mean companies (Ubisoft included) will start turning the screws on other retail establishments that currently 'owe' money for products they have received.. so no more 60+ days to settle your accounts.. suppliers are going to be wanting the cash very quickly after the order, if not before to limit their risks of defaulting on payment.

I take it the supplier of all the pick n mix sweets has gone bust overnight then if woolies are not paying money owed to people !
crayfish 12th December 2008, 19:32 Quote
Nintendo could afford to buy Woolworths and turn the shops into Nintendo Shops, selling everything at RRP like they really want.
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