BarrysWorld calls in the receivers

Posted: January 23rd, 2001.

Internet games company BarrysWorldbecame the latest victims of the collapse in confidence in dotcoms when itwas forced to call in the receivers after it failed to convince its backers3i to provide further funding. The firm, which has a staff of 35, will ceasetrading on February 5th 2001, but is apparently attracting interest from anumber of potential bidders to keep the firm going in some form.

Insolvency specialists Fisher Partners have been appointed by the directorsto assist with the formalities of winding up the company.

Despite pulling in 300,000 plus players, and over 160 million pageimpressions, the popular online gaming hub has failed to convince hard toplease investors. The firm’s sales and marketing director Geraint Bungaytold CTW: “We were underspending, meeting most of our targets, and couldhave gone on for another three months, but in the end we didn’t want to rackup massive debts. The problem was simply the state of the market. It’sabsolutely dire at the moment, and incredibly hard to get funding.”

As regards the identity of the bidders, Bungay hinted that it was “the usualsuspects”, but declined to elaborate.

Meanwhile Ade Brownlow, BarrysWorld CEO said in a statement: “SadlyBarrysWorld has been impacted by the state of the investment market. Our ownability to raise funds has been crippled by the current depression in boththe Internet and Games markets with the result that our main backers 3i areunwilling to fund the business further. The decision was taken to wind-upthe company in order to ensure that we act with due respect andresponsibility to all our business partners and creditors.”

Brownlow continued, “BarrysWorld has been extremely successful in managingits brand and maintaining links with its core game-playing consumers and wethank them for their support. We also thank the trade media and the industryat large for its support and our corporate customers for their business. Wethink BarrysWorld will be missed.”

Chairman Nick Alexander said: “BarrysWorld has a great team and it’s been mypleasure to work with them. Although BarrysWorld has practiced exemplarycost control and solid corporate governance, the state of the investmentmarket makes it impossible to continue to develop the huge potential of thisbusiness in its current form.”

News page content input by Dominic Robinson, 2001.