Reviewed: 25th August 2016
OysterWorld is understood to have headed into administration with sizable debts to creditors left outstanding, despite the business having been in receipt of around £1.4 million in funding from the Welsh government in recent years.
Politicians in Wales initially welcomed the company’s decision to base its operations in Treforest and its move to the area in 2013.
But BBC Wales has reported that the company’s employees were left without wages in recent months as serious cashflow problems began to emerge.
OysterWorld’s debts are believed to have totalled more than £2 million as it called in administrators on Monday August 22nd.
“I think the main reason that the company went into administration was because of cashflow,” Andrew Tate, one of the recently-appointed administrators, told the BBC.
A total of 50 people are believed to have lost their jobs as a result of OysterWorld’s entry into administration, with the organisation having at one point had a workforce numbering 70.
Opposition Welsh MPs have been quick to criticise the current Welsh government’s performance when it comes it allocating public funds for the purposes of regional business development.
The computer games maker received a total of £1.41 million worth of financial support from the Welsh government, with a final payment of £250,000 made to the company as recently as August 2015.
Representatives of the Welsh government have previously described OysterWorld as being a “regionally important company” and have defended the decisions taken to allocate money in support of its development.
“We were sorry to learn that OysterWorld Games are being placed into administration,” a Welsh government spokesperson said in a statement.
“We can confirm the company received a Welsh government grant under the condition of creating 60 jobs in Wales and that this target was met and exceeded.
“The gaming sector in Wales is growing and we anticipate that the skills and experience gained by the staff of OysterWorld Games will be attractive to other digital companies either based in, or looking to set up in Wales.”
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