The French company DON’T NOD, known for Life is Strange and Vampyr, is trying to avoid bankruptcy. The company announced that on October 19, the Paris court granted its request to initiate the safeguard procedure, which will temporarily freeze payments on old debts and provide time to seek financing.
This is a procedure provided by French law for companies that have encountered serious financial difficulties but have not yet stopped fulfilling their payment obligations. It allows them to continue operations under judicial supervision, suspends the collection of debts incurred before the procedure began, and offers the possibility to negotiate a financial recovery plan with creditors.
In the case of DON’T NOD, the initial judicial observation period will last for six months. If necessary, it can be extended for another six months. The court has also appointed a judicial administrator to assist with the restructuring process.
According to DON’T NOD CEO Oskar Guilbert, the situation in the gaming industry remains challenging, and access to financing is limited. The company's available resources are insufficient to meet all current business and new project development needs.
“Seeking judicial protection is a preventive measure. It should give us the necessary time and legal tools to find a sustainable solution while allowing us to continue working and preserve our assets, projects, and expertise,” stated Guilbert.
App2Top.ru reported on DON’T NOD's issues back in June, and in September, the company warned that without additional financing, its continuation beyond January 31, 2027, would be in doubt.
The situation is further complicated by financial results. By the first half of 2026, DON’T NOD’s revenue decreased by 14% to €6.1 million, and the operating loss by EBITDA increased from €2 million to €4.3 million. The net loss amounted to €7.1 million. Furthermore, the company acknowledged that sales of the game Aphelion, released in April, were below expectations.
DON’T NOD continues to cut expenses. According to the restructuring plan presented in September, the company's French division will switch to developing only one game at a time. The changes may affect up to 85 jobs. This plan does not apply to the Montreal studio's activities.
It's worth noting that DON’T NOD's financial issues have been ongoing since 2024. At that time, the company reported unsatisfactory sales of Jusant and Banishers: Ghosts of New Eden, froze the development of two projects, and subsequently began staff reductions.
Now, DON’T NOD's future will depend on the restructuring results and the company's ability to negotiate financing for further operations.