Telltale Games closes its doors and liquidation has begun

Cal Jeffrey

Posts: 2,793   +701
Staff member

However, it looks like Telltale may have breathed its final gasp as a holding company named Sherwood Partners has reportedly taken over and is in the process of liquidating the business. The holder is currently contacting creditors and looking to settle affairs. Telltale is avoiding bankruptcy court in favor of "assignment for the benefit of creditors" (ABCs), which is a much faster process.

“A company can go out of business without going bankrupt,” attorney Brandon Huffman with Odin Law & Media told GameDaily. “All that means is that they were able to find someone to give them enough money for assets to pay any creditors or they had the money on hand.”

What makes ABCs faster is it does not entail a court process. However, it does require that Telltale’s creditors agree to the arbitration-like procedure in advance. That agreement has seemingly already happened as Sherwood has been given the go-ahead to liquidate. Telltale's games have even been disappearing from Steam.

Getting to this point seems like it took forever though. When the layoffs first began in November 2017, nobody seemed to know that the studio was on the way out. In fact, CEO Pete Hawley downplayed the move at the time saying the layoffs were part of a streamlining effort.

Things seemed fine until last September when Telltale cut another 90 percent of its workforce without notice and with no severance packages. This cut left a small crew of 25 designers that were to finish the final season of The Walking Dead. All other projects were canceled.

Co-founder Dan Connors explained that the company had been waylaid by a financing round that went sour and left the company with no capital to continue functioning. Despite the explanation, the unexpected layoffs triggered an outcry from employees and a worker’s rights group. A class-action lawsuit soon folowed alleging labor violations.

To make matters worse, former employees are reportedly going to see their COBRA coverage cut off at the end of November instead of after the typical 18 months. COBRA was designed as a safety net for terminated employees to give them time to get on another health care plan, so they don't have a lapse in coverage. Since month’s end will see the company completely liquidated, there will be no health plan for COBRA to utilize. Telltale can probably expect lawsuits over this as well.

Even though the company is finally giving up the ghost, I somewhat doubt this is the last we will hear of it.

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EClyde

Posts: 2,378   +937
"To make matters worse, former employees are reportedly going to see their COBRA coverage cut off " I am sure all these employees loved Obama care. It's for them and as we were told....cheap and can see any doctor. What are they worried about? It's the Affordable Care Act.
 

Eldritch

Posts: 289   +430
Are we really surprised? They dealt specifically in a particular format and made every game for all kinds of genre in exact same way. I like Game of Thrones but never felt like picking up their adaptation of it as we know already how Telltale games go.
Compared with other innovative titles like Life is strange, it was no surprise that they crumbled.
 

GreenNova343

Posts: 441   +330
To me, the most confusing aspect about this is about the games being pulled from Steam. I would have thought that the creditors would want to keep them up on Steam, since those games are assets of the company (the argument of tangible vs. intangible being too advanced of a discussion for here, but suffice it to say that if someone's willing to pay for it, even intangible assets can have a monetary value). Unless this is just Telltale saying, "screw it, we're not going to make any more money off these games, so no one else can...plus, we can screw our soon-to-be-former customers just as much as our soon-to-be-ex employees & the creditors".
 

Panda218

Posts: 676   +392
"To make matters worse, former employees are reportedly going to see their COBRA coverage cut off " I am sure all these employees loved Obama care. It's for them and as we were told....cheap and can see any doctor. What are they worried about? It's the Affordable Care Act.
This is exactly what my yooper family members would say too... Followed by Lock her up...
 
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Are we really surprised? They dealt specifically in a particular format and made every game for all kinds of genre in exact same way. I like Game of Thrones but never felt like picking up their adaptation of it as we know already how Telltale games go.
Compared with other innovative titles like Life is strange, it was no surprise that they crumbled.
Are we really surprised? They dealt specifically in a particular format and made every game for all kinds of genre in exact same way. I like Game of Thrones but never felt like picking up their adaptation of it as we know already how Telltale games go.
Compared with other innovative titles like Life is strange, it was no surprise that they crumbled.
I like game of thrones as well.. and just randomly picked up my Kindle and played it through again.. I have nothing but good things to say about it..from the use of the actual cast.. the integration with the series timeline .. the shock in sudden dynamic scenes and character interactions... I've played both Barman games.. wolf among us.. hinterlands.. even the guardian's of the galaxy one.. The game of thrones game stands out for its eerie ability to mimic the show' s feel and story... it's obvious that they worked closely with the shows production team.. I would recommend it to any GoT fan..