How's this for scary news? GenCon...

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**malfred**

http://gencon.com/2008/corporate/news-pr/releases/2008/2008.02.15.Press.aspx

**Kid_Kyoto**

Gen Con what???

Attacked by zombies?

Canceled?

Most popular event in America?

What?

**Kilkrazy**

GenCon files for Chapter 11 Bankruptcy Protection.

This is the scheme that allows the company to try and trade its way out of trouble, with debts deferred for a while.

There are similar schemes in Europe.

The statement is the usual yadda yadda about strong fundamentals; in this case I think they have a point about most of their costs being associated with one-off events. If they close down a couple of their Cons and concentrate on making the main Con a success it could work.

I don't know whether GenCon ever successfully exported the idea to Europe and Asia. Europe (at least the UK) has plenty of successful wargame shows already.

**Duncan_Idaho**

Well, there was GenCon Paris...

**Deadshane1**

Never went, don't care.

**Kilkrazy**

Duncan_Idaho wrote:Well, there was GenCon Paris...

Was it a success?

I don't remember a GenCon UK but I haven't been looking for it.

**Kesher**

I think they are doing this because Lucas (George) is suing them.
R2-D2's are expensive on the upkeep ya know?

**JohnHwangDD**

Looks like their website is overloaded.

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 courtsupervised 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 www.gencon.com.

# # # Media Contact: Stacia Kirby (206) 363-1492 stacia@speakeasy.net

**MagickalMemories**

Kesher wrote:I think they are doing this because Lucas (George) is suing them.
R2-D2's are expensive on the upkeep ya know?

Heard nothing about that.
What's the scoop?
Got a link?

Thanks.

Eric

**Savnock**

This could be good advertising for this year's GenCon: See It While It Lasts! Going, Going, Gone!

On a tangential note, Rackham is in a similar sort of pretectionin the EU, and is partway through their creditor protection period.

Can those with biz knowledge tell us exactly how bad this is likely to be? How often does recovery from Chapter 11 to profitable (or even stable) status happen?

For those of you unfamiliar with him, Peter Adkisson used to own Wizards of the Coast. He's the guy that owned it pre-Magic, and took it all the way to the sale to Hasbro. I fear who might end up owning GenCon if they have top sell it. This is no diparagement on Adkisson- I hear he's a very nice fellow- but a businessman's go to do what he's got to do.

**Polonius**

Well, usuablly companies that have profitible segments as well as unprofitible ones tend to recover pretty well, as long as the loss of unprofitible areas doesn't cut too deep into economy of scale or overall ability to compete.

For example, many US steel companies went into Chapter 11, restructured, and still went belly up. External market factors simply made making steel in the US unprofitible, and no amount of trimming or debt relief could really change that fact.

On the other hand, companies such as Chrysler, that were overextended and too highly leveraged (meaning they're growth was fueled by borrowing money, not selling stock) were able to regroup once the pressure of paying creditors was relieved, and they could sell some bad investments and come out of bankrupcy leaner, but healthier.

If GenCon shuts down all the miscellany but focuses on GenCon indy, it'll be able to stay in business. It has an asset that still makes money for it.

**Rargh**

MagickalMemories wrote:
Kesher wrote:I think they are doing this because Lucas (George) is suing them.
R2-D2's are expensive on the upkeep ya know?

Heard nothing about that.
What's the scoop?
Got a link?

Thanks.

Eric

No link, but basically:

Gencon and Lucasfilm had an agreement for Gencon to run a Star Wars convention. As part of it they (Lucasfilm) donated a range of original props etc for auction with the proceeds to go to the Make A Wish Foundation.

Lucasfilm are sueing Gencon because they alledge that not only did they not get their share of the profits from the con, but the money from the auction was never paid to Make a Wish..

allegedly..

R

**Blackheart666**

malfred wrote:http://gencon.com/2008/corporate/news-pr/releases/2008/2008.02.15.Press.aspx

not scary at all. I hope Lucas cleans their clock seizes everything that GenCon has and then sells the convention to someone that can actually run it properly.

Atkinson lucked into where he is off of Magic and now we're just finding out that he might not be all he's cracked up to be in the gaming world.

**Savnock**

Yeah, Lucasfilm's not going to do that. And before you go wishing ill on any company or individual, explain the basis for your vitriol.

**JohnHwangDD**

He's an angry, angry man?

**Krak_kirby**

With Origins getting lamer every year, it would be a real shame if GenCon crapped out. But if GenCon did screw over Lucasfilm, they deserve punishment for such a stupid move.

**JohnHwangDD**

If GenCon dies, then Origins will pick up the slack.

Perhaps there can be only one.

**inquisitor_bob**

An entity does not have to be bankrupt to file for Chapter 11 bankruptcy. It is often used by entities to reorganize their finances.

http://legal.thomsonwebplus.com/FramedContent.aspx?action=none&query=chapter+11&originalQuery=chapter+11¤tPageResultStart=1¤tResultRank=1&totalResultCount=247&queryId=f8d5ed2f-17dd-44f5-9b52-f917de2f9220&provenance=True&domain=&fileFormat=&language=&searchContext=97ec7c6c-1971-4a35-929f-6549f1902b0a&tabs=All|True|247|1|0|All%20Results|All%20Results|0|^News|False|49|1|||||&queryOptimized=0&url=http%3a%2f%2fwww.uscourts.gov%2fbankruptcycourts%2fbankruptcybasics%2fchapter11.html