LoLHSStarcraft ESGN Studio To Close; Staff Contracts Terminated

RichardLewisRichardLewis 2014-06-03 17:29:34

In what has proven to be a turbulent time for the emerging e-sports studio news is now filtering through that the studio is set to shut down. Recent reports had revealed that the studio had failed to pay its personnel for months, prompting a statement that they hoped to settle all outstanding debts by the end of June.

However our sources have revealed to us that whether or not this is the case the studio will be ceasing operations and has fired all its production talent. This expands to personalities such as Dan "Frodan" Chou who was seen by many as the face of the studio’s output.

It was also revealed that the studio gave no prior warning that this move was around the corner. In a move, supposedly to ensure that no equipment was taken, the staff who turned up to the studio were told to leave and that the studio would be locked with all future access being denied. This was executed by the management of the studio Babelsberg lot following non-payment of bills and staff were given no forewarning of this being a possibility. This has been typical of the communication barriers between upper management and staff as reported by onGamers initial report, which can be read here.

They had also recently taken the decision to cancel their upcoming $25,000 Hearthstone tournament citing a "backlog of issues" that needed resolving first.

No official statement has been passed by anyone at ESGN and it isn’t clear whether or not they will still be able to meet the promise of payment they made just a few days ago. Regardless it seems that the impact of spiralling costs amid a flawed and non-profitable business model have taken their toll and in just a little over six months the business has finally come to an end.

Expect more on this story as it develops.

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