0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Cashflow Woes Force Welsh Computer Games Company into Administration

Cashflow Woes Force Welsh Computer Games Company into Administration

Reviewed: 25th August 2016

A computer games company based in Treforest near Pontypridd in south Wales has entered administration, with cashflow issues cited as the primary cause of the company’s financial undoing.

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.”

With 55 offices across the UK, you’re never far away from expert and confidential advice.


Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Andrew MacKenzie
Julie Palmer
Thomas Mckay
Keith Tully
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Our numbers speak for themselves

55
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners