MidBoss, the studio behind 2064: Read Only Memories and its sequel Neurodiver, has officially filed for Chapter 7 bankruptcy. The voluntary petition, lodged in June, reveals a stark financial picture: only $2,560 in assets against a staggering $823,272 owed to creditors.
The debt portfolio is diverse, with $138,980 spread across four loans, $64,000 due to a revenue‑share agreement with an individual, and $87,985 owed in royalty shares to roughly a dozen parties. Additional obligations include $36,099 in credit‑card debt, a $7,000 balance with Chase Bank, and a contested equity claim of $404,538 against Tom Kaitchuck.
Matt Conn, a co‑founder who launched MidBoss out of GaymerX in 2013, appears as a key figure in the filing. He is listed as the interim CEO, has signed the bankruptcy documents, and is owed a $70,922 shareholder loan plus a $13,748 royalty share. Conn stepped down as CEO in 2018 amid abuse and sexual‑harassment allegations from former employees, yet retained a 40 % stake in the company.
Following Conn’s departure, Cade Petersen assumed the interim CEO role, steering the studio until 2025 when he quietly exited. Alexander Mehrer then took the helm, reportedly revitalizing the dormant studio, re‑establishing contracts, mitigating risks, and reopening revenue streams before leaving in August of last year.
Since Mehrer’s exit, Conn has resumed control, maintaining his 40 % ownership. The studio’s future now hinges on how it navigates the bankruptcy proceedings and whether it can rebuild its operations and reputation in the competitive indie market.
The intellectual property of Read Only Memories, along with MidBoss’s documentary series Gaming in Color, are listed as assets on the company’s balance sheet, yet neither has a disclosed valuation. This lack of financial detail leaves investors and fans uncertain about the future direction of these properties.
After a protracted four‑year development cycle marked by multiple postponements, the sequel to Read Only Memories, titled Neurodiver, finally launched in 2024 to lukewarm critical reception. The project’s troubled timeline and mixed reviews raise questions about the viability of reviving the franchise and the broader strategy for MidBoss’s IP portfolio.
MidBoss also lists two titles currently in development on its website: All AI Must Die and The Artificial Artist. However, the status of these projects remains ambiguous, with no public updates on their progress or release windows.
❓ Frequently Asked Questions (FAQ)
What led MidBoss to file for Chapter 7 bankruptcy?
MidBoss filed for Chapter 7 bankruptcy after a financial audit revealed only $2,560 in assets against $823,272 in liabilities, including loans, revenue‑share agreements, royalty obligations, credit‑card debt, and a contested equity claim. The studio’s inability to meet these obligations prompted the voluntary petition.
Will the bankruptcy affect the release of future games like Neurodiver?
Yes. Chapter 7 liquidation typically ends a company’s operations, meaning MidBoss will likely cease development and any planned releases, including Neurodiver, unless assets are sold to a new owner who chooses to continue the projects.
Who is responsible for the debts and what are the main creditors?
The debts are owed to a mix of creditors: four loans totaling $138,980, a revenue‑share agreement with an individual for $64,000, royalty shares of $87,985 to about a dozen parties, $36,099 in credit‑card debt, a $7,000 balance with Chase Bank, and a contested equity claim of $404,538 against founder Tom Kaitchuck. Matt Conn, the co‑founder, is also personally liable for a $70,922 shareholder loan and a $13,748 royalty share.
News Source: Kotaku
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