Is the end nigh for Interplay?

News - UPDATED. The stock is trading, but is anyone home?

If Interplay's current downward spiral does result in their ultimate demise anytime soon, then this must surely have been the most drawn-out death scene since the insane terrorist-come-robber with the lank blonde hair ran psychotically out of the burning Plaza at the close of Die Hard. Once golden-child of the industry, Interplay has been responsible for releasing some truly seminal titles - the likes of Fallout and Baldur's Gate - as well as many more all emanating from the house that Titus bought. But since Titus' acquisition some years back, the firm seems to have been in a slow decline with the burst of the technology bubble, a fact emphasised by the plight of their beleaguered parent company whose other publishing interest in Virgin Interactive saw Virgin reclaiming their brand name and the company then down-sizing to next to nothing.

Indeed, despite reports claiming Interplay only had $1.2 million in the bank in April, it is strange that Titus did little to help, despite the optimism of financial reports which hinted at new Fallout and Kingpin titles which would turn the company around. Even in April, rumours were already mounting that the rumoured $450,000 owed to landlord Arden Reality would result in their eviction from their Californian corporate HQ, though such tidings of gloom were quickly dismissed by chiefs at the firm who insisted all was on course.

We heard nothing but idle gossip and speculation surrounding these troubles throughout May, and it was only last week when it was noted the Interplay website had gone offline (permanently, it would seem) that new reports began filtering out of Irvine, many suggesting that the publisher would be forced to literally close-up shop with Arden finally locking the doors on their HQ. Employees were told to remove their possessions in anticipation of this, and reports suggested many had been advised to file for unemployment insurance.

Other reports last week offered word that most of the work force had been already laid-off, however such information may have been premature with word only reaching us this weekend that the work force had indeed dropped markedly since April's reportage. However, the situation appears to be reaching boiling point at the firm now, with many employees claiming they have not been paid or received health insurance for weeks, and the list of lawsuits against Interplay growing all the time - not only from employees but Bioware ($156,000 in back Baldur's Gate royalties), $432,000 in unpaid rent to Arden, $179,000 to the state in unpaid taxes - and now a fine from the Californian Department of Industrial Relations, who charged Interplay with a $79,000 bill - according to the Orange County Register - for lacking workers' compensation insurance and not paying staff after a tip-off from disgruntled employees.

The seventy-nice staffers at Interplay effected by the well-documented financial woes at the firm won't be returning to work anytime soon either, as the Division of Labour Standards Enforcement department has reportedly closed Interplay's offices, with a representative informing The Register: "An employer has responsibilities when they open a business. The responsibilities include proper and timely payment of wages. It includes providing workers compensation coverage in case there are injuries. If the employer cannot accommodate those basic issues of doing business, we cannot allow employees to work."

"I hope to have that [insurance] back by Monday or Tuesday," CEO Herve Caen responded on The Register. "The company has not shut down. [The authorities] can't do that. It can only let me not let employees work," he added, with seemingly unerring optimism.

With the list of outstanding bills increasing, and other legal wrangling emerging all the time, it would seem that the end is very much nigh for Interplay, especially as speculation mounts that the PLC may not actually be ale to get back into their offices again, despite Caen telling GameSpot just yesterday: "You can see our stock is trading, so we're still here." Adding on the closure of their HQ, and increasingly disgruntled employees: "We're working on a lot of deals - a lot of solutions. You'll hear from us soon."

Lead game designer Sean K. Reynolds also publicly quit the firm over the weekend in rather embarrassing fashion for the company, stating "Right now I'd rather be done with Interplay than sit around seeing if the upper management can salvage the situation." He also stated that most staffers expected Interplay's collapse this year. "We just thought it wouldn't happen until August, rather than April," he admitted.

Hard times indeed, and with lawsuits looming, a closed HQ, little public support or even (it would seem) interest from parent company Titus, not to mention the prospect of eviction - it appears Caen's publicly-traded stock may soon by the last brick in Interplay's ever-crumbling façade to finally fall out of place. We'll keep you updated with the latest happenings in Irvine as we get it.

Update (17.41pm): The latest news has it that Titus Interactive shares traded on the Bourse in Paris have been suspended as of today (June 7th), with an official announcement now pending. Like Interplay, parent company Titus' troubles have been well-documented, and the gloom merchants would have it that this could be the beginning of the end for the whole group unless major changes are afoot.

Update (June 9th): The on-going Interplay saga took a turn which no one quite expected yesterday when it was revealed that the French financial authorities had suspended parent company Titus Interactive's shares amid investigations into the firm's operations - just days after the Californian authorities closed Interplay's offices after employees went unpaid. Trading of shares halted yesterday at 0.16 Euros per share, and investigations in France will now be conducted into both Titus and subsidiaries Sofra Games and Avalon France.

A statement from Titus suggested that the publisher "will enter into a period of observation during which it intends to continue negotiations on the possible sale of assets," this breathing space will continue until October, and comes after Interplay / Titus head Herve Caen suggested a number of deals were in the offing, perhaps implying that Interplay's better "assets" (games, brands, licences, etc.) may be departing the collapsing firm sooner rather than later.