SNK of Japan has announced that it will no longer be able to continue to trade, effective immediately.
This is the result of SNK’s claim for rehabilitation bankruptcy originally filed in the Tokyo courts back in April of this year. Back then, SNK filed for a tax extension period, in order to get its financial situation back under control and pay its creditors, essentially keeping the business functioning and buying it time to get back on its feet. At this point, SNK’s total debt was estimated, by the company itself, at 38 billion yen.
The company has desperately tried to cut costs throughout this year, closing offices and public display arcades, but all to no avail.
Yesterday, the Osaka court withdrew its support for SNK’s rehabilitation bankruptcy claim, meaning that SNK is now faced with a difficult choice: Either pay back all tax and debts owed, or cease trading.
It is, however, unlikely that SNK will get the chance to make the decision, as its amusement company Aruze owns 50.9% of all stock. Aruze has called a shareholder meeting for the 11th of this month at which it is almost certain that it will be decided that SNK as an individual body will file for bankruptcy proper.
Also on the agenda for the meeting will the appointment of ten Aruze employees as SNK executives. Their job will be to oversee the final demise of SNK and ensure that the resulting bankruptcy is as inexpensive as possible.
SNK’s latest offering, King of Fighters 2001, a joint effort with Eolith Entertainment will still be released in November as planned. It seems a shame that SNK won’t be around to see it.