Scott Bartel
United States
Largo
Florida
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Has anyone heard this yet???!!! I hope it doesn't fold!
Quote: Gen Con Files for Chapter 11
SEATTLE (February 15, 2008) Gen Con LLC announced today that it has
filed for
Chapter 11 protection in the United States Bankruptcy Court for the
State of Washington.
This action became necessary as a result of significant unforeseen
expenses associated
with attempts to expand its core business to encompass externally
licensed events. Gen
Con's flagship show, Gen Con Indy, remains a vibrant, profitable
event. Gen Con Indy
will take place as scheduled August 14–17, 2008, in Indianapolis,
Indiana.
The protections afforded by Chapter 11 will allow Gen Con to further
its efforts to
address its liquidity needs, preserve value for its creditors and
explore strategic
alternatives for the business. "Because the fundamentals of our
business are strong; and
because our debt problems are challenges mostly linked to one-time
events, we feel
confident that the profile of our company will benefit under Chapter
11 and come out
strong in the end," said Peter D. Adkison, CEO of Gen Con.
Chapter 11 refers to the section of the U.S. Bankruptcy Code that
provides for court-
supervised restructuring of companies as they continue to operate
normally. This
proceeding is intended to help companies to become stronger financially.
Gen Con LLC will continue to operate without interruption during this
process and looks
forward to an expeditious resolution to the short-term challenges and
the ability to focus
entirely on producing Gen Con Indy, The Best Four Days in Gaming.
International Gen
Con events are unaffected by this situation and will continue to
operate as scheduled.
About Gen Con
Gen Con, LLC produces the largest consumer fantasy, sci-fi and
adventure game
convention in North America. Its operations include Gen Con Indy and
licensees for
European and Asia Pacific Gen Con shows. It was acquired in 2002 by
former CEO and
founder of Wizards of the Coast Peter Adkison, who solely owns the company
headquartered in Seattle, Washington. Gen Con is a consumer and trade
experience
dedicated to gaming culture and community. For more information visit
the website at
Media Contact:
Stacia Kirby (206) 363-1492
stacia@speakeasy. net
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Lucas Kenall
United States
DuPont
Washington
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As big as GenCon (Indy) is, I can't imagine that the show will not go on. The demand is too high. I'm certain there would be an individual or group that could bail them out, if needed, but it sounds like Peter has a handle on things. Seeing this is the most profitable part of Gen Con LLC, I doubt we will ever notice anything.
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Tim Harrison
United States
Cleveland
Ohio
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I may be thinking of a different event, but didn't a major game convention (this one?) just get sued by LucasFilm for failing to turn over funds from an official Star Wars fundraiser of some sort?
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Ubergeek
United States
Camas
Washington
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That was Gen Con. Interesting they file Chapter 11 right after getting hit by the suit. Let the speculation begin.
Quote:
Lucasfilm Ltd. has filed suit against Gen Con, claiming that funds raised during an auction the Star Wars Celebration IV in May 2007 – approximately $150,000 – have not been turned over to Lucasfilm or to the Make-a-Wish Foundation.
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Jeff Wolfe
United States
Columbus
Ohio
Permanent microbadges: Zendo fan, Columbus Blue Jackets fan, Dominion Fan (one of these days I'll make the background non-white)
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The suit was actually for $650,000 plus damages and expenses. In addition to the Make-a-Wish fundraiser, they asked for $500,000 for the event itself. And it was an event on the west coast, not Gen Con Indy.
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Needle
Australia
Leichhardt
NSW
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That's what happens when your marketing is based on booth babes.
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And lord knows, Lucasfilnm needs the money!!
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Andrew Gross
United States
Seattle
Washington
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I would feel more comfortable about this if their website wasn't down.
If, contrary to the press release, Gencon Indy is cancelled, it would really suck on many levels, not least of which is that I've already purchased my plane tickets. :-(
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Nathan Collins
United States
Dearborn
Michigan
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jgerman wrote: nnf1 wrote: That's what happens when your marketing is based on booth babes. That's what happens when your marketing is based on not enough booth babes.
"we're going under abandon ship".
You got to make sure your employees don't leave you and your customer base doesn't leave you. This is what Kmart did (now owned by sears), Northwest did (now merging being bought out by delta) and what dozens of other companies that are history have done.
This really sucks, and is a blackeye on the industry. Too much expansion, too little improvement to the core business and too many employees for one con. It was as if they created the other cons to support a con throwing business.
What I really can't believe is that Gencon didn't just donate the money. I can't believe that a company that big for that many years does not have that much cash on hand. (the original 150k). You have to think Lucas tried to settle this for a while.
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SeeKay
United States
Olympia
Washington
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Unless I read it wrong it sounds to me like GenCon is trying to squirrel its way out of ponying up money it RAISED FOR CHARITY. they can burn in hell if thats the case.
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Andrew Gross
United States
Seattle
Washington
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kuocal wrote:
Unless I read it wrong it sounds to me like GenCon is trying to squirrel its way out of ponying up money it RAISED FOR CHARITY. they can burn in hell if thats the case.
I would be very surprised if that turned out to be the case.
It's very tough for the Gencon folks, because I'm positive their lawyers have advised them not to say anything more in public. So they're going to have to endure a lot of mud being slung their way, and a lot of ugly speculation, without defending themselves.
I think a more likely explanation is that they were supposed to pay Lucas a fixed amount of money for the rights to the Star Wars celebration, and had some arrangements based on receipts and profits, and also had an auction; and that they wound up losing a bunch of money on the convention, and simply didn't have the cash to pay everyone they owed-- the charity being in that group of people owed money, but not the only one.
Peter Adkinson has said on the Gencon forums that the purpose of filing for Chapter 11 at this time is to work out a payment plan so that they can pay everyone what they owe them. It's much better for the charities to get all the money coming to them over a period of several years, as opposed to getting pennies on the dollar now as Gencon LLC is sued out of business. It's not like they have hard assets you can sieze and sell to get the money up front: they make a profit every year by putting on Gencon Indy, and that's where the proceeds to pay their debts will need to come from.
I don't have any inside information, and could certainly be wrong about this interpretation, but I do think it's more likely than Peter trying to screw a charity out of their money whilst continuing to run a profit-generating convention every year.
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E Butler
United States
Hughesville
Pennsylvania
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Perhaps my post was a bit harsh. -Edit-
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Kevin Wilson
United States
Roseville
Minnesota
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Peter Adkison is one of the nicest and kindest gentlemen I have met in the game industry. If you don't know any more about the situation in question than is in the press release, you have no business spreading rumors that he and his company are ripping off the Make-a-Wish Foundation. Peter will settle things to everyone's satisfaction given a chance, because he is that kind of a guy, you mark my words.
-Kevin Wilson
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Nathan Collins
United States
Dearborn
Michigan
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KevinW wrote: Peter Adkison is one of the nicest and kindest gentlemen I have met in the game industry. If you don't know any more about the situation in question than is in the press release, you have no business spreading rumors that he and his company are ripping off the Make-a-Wish Foundation. Peter will settle things to everyone's satisfaction given a chance, because he is that kind of a guy, you mark my words.
-Kevin Wilson
I don't think anyone said the guy wouldn't bake you bread, but as far as gencon goes he has had an admitted history of hiring the wrong people for the job. I remember a couple of years ago his "techical team" was telling him that certain things weren't possible. Whereas you had software engineers online trying to excplain to him that they were lying to him.
I just can't see how any smart business man let a company or a situation get this far. Especially over what seems to be 150k. But this isn't about this one thing. This is about a host of blunders that ztarted with trying to make gencon into a franchise without a strong core. This comes from trying to run a con like a year around business.
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KevinW wrote: Peter Adkison is one of the nicest and kindest gentlemen I have met in the game industry. If you don't know any more about the situation in question than is in the press release, you have no business spreading rumors that he and his company are ripping off the Make-a-Wish Foundation. Peter will settle things to everyone's satisfaction given a chance, because he is that kind of a guy, you mark my words.
-Kevin Wilson
Well according to this post
http://reporter.blogs.com/thresq/2008/01/lucasfilm-sues.html
GC did just that rip of Make-a-Wish.
They case was originally filed back on 1/18/08 or 18 of Jan, 2008 for my European readers. 
He may be a nice guy but it looks bad right now.
I'm still searching the GC site for his forum post about this but I cannot find it.
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Tuomas Riekkinen
Finland
Kuopio
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I maybe mixing this up with some other american con, as Im not that familiar with them, but I think it was gencon that had open letter kinda thing published on theyre site 6-12 months ago about problems? I think it was linked in the forums.
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Michael Jordal
United States
Austin
Minnesota
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I have been worried with them trying to use the Gen Con name to make cons in other places, and I wonder if that is kind of biting them with things like Gen Con SoCal, Europe and Australia taking resources and not pulling their weight. I guess if Gen Con does go under I won't cry, I will just start making Origins or Essen my big con of the year trip
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Peter Stein
United States
Westerville
Ohio
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generalpf wrote: I'm trying to imagine how this will affect me, but for the life of me, I can't.
This will affect every living thing in the entire universe in so many ways one can only begin to imagine.
OK, maybe I'm exaggerating slightly. . .
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http://www.indystar.com/apps/pbcs.dll/article?AID=/20080220/...
February 20, 2008
Gen Con files for Chapter 11 protection
Popular Indy confab says it won't pose hurdle to 25,000-strong August visit
By Erika D. Smith
erika.smith@indystar.com
February 20, 2008
Gen Con, sponsor of one of Indianapolis' largest annual conventions, has filed for Chapter 11 bankruptcy protection.
But that won't stop it from returning with thousands of hobby gamers in 2008 and beyond, according to the Indianapolis Convention & Visitors Association. This year, Gen Con Indy is expected to attract 25,000 attendees who will spend more than $25 million on lodging and entertainment. Gen Con is committed to the city through 2010.
"We have every reason to believe that it will not affect the future of Gen Con in Indianapolis," said Bob Schultz, a spokesman for the association. "We've been assured that by their leadership."
Gen Con Indy, conducted Downtown every year since 2004, makes its presence known with thousands of attendees walking around in costumes and playing card games and board games into the wee hours.
"Indianapolis is their highest-performing event," Schultz said.
Indeed, in a statement issued Feb. 15, Gen Con said the "flagship" convention "remains a vibrant, profitable event" and will take place as scheduled Aug. 14-17.
Seattle-based Gen Con said it had to file for bankruptcy in Washington state because of "significant unforeseen expenses associated with attempts to expand its core business to encompass externally licensed events."
In the filing, Gen Con lists its assets and liabilities as each between $1 million and $10 million. It owes $748,956.81 to its largest creditor, convention services company George E. Fern Co. of Columbus, Ohio. Gen Con owes the Indiana Department of Revenue $116,858.70 in taxes, but Gen Con disputes that claim, according to the filing.
Gen Con was sued in January by LucasFilm Ltd. over a "Star Wars" convention last year.
In the lawsuit, LucasFilm says Gen Con didn't uphold the financial requirements of a contract to host the convention, and it failed to turn over the proceeds from an auction of "Star Wars" memorabilia to the Make-A-Wish Foundation or to LucasFilm.
A Gen Con spokeswoman didn't return a call for comment.
In a statement, Gen Con Chief Executive Peter Adkison said his company's debt problems are mostly linked to one-time events.
"Because the fundamentals of our business are strong . . . we feel confident that the profile of our company will benefit under Chapter 11 and come out strong in the end," he said.
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J.L. Robert
United States
Sherman Oaks
California
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board_games_reno wrote: And lord knows, Lucasfilnm needs the money!!
I'd wager someone on the Make-A-Wish Foundation's beneficiary list did.
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Thomas Taylor
United States
Pleasanton
California
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J.L.Robert wrote: board_games_reno wrote: And lord knows, Lucasfilnm needs the money!! I'd wager someone on the Make-A-Wish Foundation's beneficiary list did.
They're dead now anyways.
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Chad Ellis
United States
Brookline
Massachusetts
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andrewgr wrote: If, contrary to the press release, Gencon Indy is cancelled, it would really suck on many levels, not least of which is that I've already purchased my plane tickets. :-(
I've already purchased an endcap booth! 
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Chad Ellis
United States
Brookline
Massachusetts
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tornspace wrote: You'll see one more, max. They are absolutely in trouble. That language is in every single Chapter 11 press release. "Our core business remains strong." Oh yeah, except we're broke.
In my experience, there are two kinds of bankruptcies. The first, and most common, happens when the core business is in trouble. Retailers who are having their lunch eaten by competitors, for example, first file for chapter 11 protection and then are often either liquidated or acquired at a bargain price.
The second kind occurs when a singular event creates losses the core business can't handle. That seems to be the case here -- GenCon isn't going under because GenCon SoCal was awful or because Indy is no longer profitable. It's in trouble because it lost a bunch of money on a new event.
Assuming that's the case, it is very likely that Indy will continue -- with the only negative consequences coming from people worrying that it won't. For example, if I thought Indy was in danger I might decide not to book an exhibitor booth there. I did book mine, but it's reasonable to think that some companies won't or that some will book smaller booths than normal. Similarly, some players may decide to go to Origins rather than Indy to avoid the risk that they make plans, book tickets, etc. and then the show doesn't go on.
My best guess is that Indy will be a bit down this year because of the worry effect but that the worry won't reach "run on the bank" levels and regardless of what happens with the lawsuit, GenCon Indy will continue. (Even if the result of the suit is that GenCon's equity were to become forfeit to the creditors, those creditors would likely want to continue running a profitable event.)
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Tom Anders
United States
Indiana
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I paid for my booth for this year already as well. GenCon Indy is extremely profitable this has been clear in every statement financial or otherwise made by GenCon in the past.
They restructed the booth payment plan this year which should help get them a nice injection of cash sooner than normal as in order to use your priority points you had to book your booth by Feb. 22nd this year (and those priority points are very important to many of the GenCon vendors).
So with everything I've read ... this is not a company that doesn't have a profitable product. They overextended on new events outside of GenCon Indy and they didn't pay off. The core convention of their portfolio is still very profitable.
Galak
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Eric Franklin
United States
Everett
Washington
He sees you when you're sleeping; he knows when you're awake ...
He knows if you've been bad or good.
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tornspace wrote: jgerman wrote: homiefud wrote: Has anyone heard this yet???!!! I hope it doesn't fold!
Gencon Indy is in no danger, as stated in the press release. You'll see one more, max. They are absolutely in trouble. That language is in every single Chapter 11 press release. "Our core business remains strong." Oh yeah, except we're broke.
There are multiple types of bankruptcies here in the US.
Chapter 11 is the "We're a corporation who is behind on our bills. We can pay our bills off, but we need more time" bankruptcy.
Chapter 7 is the "We're not making any money and will never be able to pay our bills. We're finished. Done. Gone. Stick a fork in us" bankruptcy.
Either one requires court approval - if GenCon gets Chapter 11 approval, then GenCon Indy will be unaffected (as it's their core moneymaker).
At this point, we just need to wait and see.
Eric
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