Yesterday, news came out of Sweden that will make some nostalgic fans cringe. Esportal Group, the company that operates the Esports matchmaking platform and Inferno Online, Sweden's largest network of LAN centers, has filed for bankruptcy. For CS and Dota 2 fans, this could be a big blow as Esportal provided matchmaking and tournaments in these games on its platform.
Esportal Group operated LAN centers in Stockholm, Malmö and Gothenburg, providing matchmaking services outside of CS gameplay, similar to what FACEIT does. The platform has also hosted tournaments for Valve's other discipline, Dota 2.
On July 24, 2024, the company filed for bankruptcy in the Stockholm District Court as it was unable to find the necessary funding to continue operations.
The Board of Directors stated that the financing required to continue the transformation had not been secured, resulting in an inability to cover short-term working capital requirements. The company's overall debt is assessed as long-term and unsustainable, making the group insolvent. A press release on the company's website says that over the years, financing has been provided through new issues and loans from large private shareholders. The group has also received a deferral from the Swedish Tax Agency in 2023 and has implemented several programs to reduce costs and create new revenue streams.
The bankruptcy comes two years after the company lost SEK 42.1 million (USD 3.9 million). The press release gives no details on the future of the platform while the company goes through the bankruptcy process. Chairman Stefan Magnusson, in a comment made to Dust2.us by Dust2 Sweden, declined to speculate on the future of the company, saying it was a matter for the bankruptcy trustee. CEO Magnus Granqvist also did not respond to questions, but expressed hope that the companies can continue under new management.
This news is important because it demonstrates the instability of even large and well-known companies in the cybersports industry. Time will tell what the future holds for Esportal and Inferno Online, but for many gamers it can be a serious blow to the usual services and events.
Source: Dust2.us
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