Company closes, hundreds of employees lose their job.
Tuesday, August 31, 2004 - Acclaim Entertainment, the Glen Cove based video game publisher and developer founded in 1986, has apparently ceased all operations, even if no official announcement was made to the press. The 600 employees around the globe were asked to leave their offices; most of them weren't even paid for their work in August.
(Posted: Tuesday, August 31, 2004, 7:57AM GMT)
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In his long activity, Acclaim has always had financial problems, despite the success and the hype surrounding many of its games. The company has been on the brink of bankruptcy for about two months. A week ago, the company informed that it was in need of a new $65-million loan, and that a tentative agreement with a new lender was in place. The move evidently didn't work, and last Friday, all the offices of the company were closed. These included the Glen Cove headquarters in New York, and the studios in Austin, Texas, and Manchester, England.
All Acclaim officials refused to talk with the press to comment the event or were unreachable, so most of the information comes from employees that last Friday were informed the company was unable to get a new loan and was going to close his offices. Employees at Glen Cove said all staffers were told to meet in the company cafeteria at noon Friday, where Acclaim chief financial officer Gerard Agoglie told them clearly that the company was closing, that they would not be paid for their last two weeks of work, they would not receive payments for unused vacation time, and all their benefits would last only until the end of the month. Things went even worse for employees working in United Kingdom, who are paid monthly; of course, they received no salary for the current month.
All Acclaim's upcoming releases (The Red Star, Juiced, Worms 3D, which were all slated for a September release) will no longer be released by Acclaim - company executives will probably sell the games to another publisher.
Ps2Fantasy.com is close to the hundreds of people who are losing their job; we will be happy to offer our web space to let employees of Acclaim talk about their situation, in the hope they will soon be able to find a new adequate job position.