A video game and accessory company responsible for the local distribution of the popular Angry Birds brand has collapsed into voluntary administration.
The collapse comes as the local video game market has been under pressure in recent years, with not only development studios closing but companies in the retail and distribution industries affected.
Jones Partners confirmed this morning Tuff Kat Entertainment has been placed in voluntary administration, with principal Bruce Gleeson appointed.
“The appointment was made by the secured creditor of the company,” the firm said in a statement.
“At this stage, the administrator is assessing the company’s financial position and the best method of realising the company’s assets, including the potential sale of the company or its assets to a purchaser. At this stage, it is uncertain whether the company will be wound up at the second meeting of creditors.”
The second meeting is scheduled for April 9. The first meeting already took place on March 20.
Tuff Kat managing director Julian White was contacted by SmartCompany this morning, but no reply was received prior to publication.
White has a long history in the video game industry, having also set up Red Ant Studios in 2001. That business eventually closed after suffering difficulties during the global financial crisis.
The company was responsible for the local distribution of Angry Birds games. The Angry Birds brand has become one of the largest entertainment franchises in the world, having been developed by Finnish company Rovio Entertainment. The company is even considering an IPO to capitalize on a valuation reported to be more than $US1.2 billion.
The gaming industry has been affected by local closures over the past few years. More recently, retail chain GAME Australia closed after being placed in administration.