Ubi could lose $2m from Woolworths collapse

by Jason Dobson { Dec 11th 2008 at 8:00PM }

Ubisoft may be gnashing its teeth at the one that got away, but the French publisher will likely be thankful for any extra padding in its account following the much publicized Woolworths collapse. GI.biz reports that the UK retail chain's recent demise, along with its distribution business EUK, could end up costing Ubi €1.5 million, or something in the neighborhood of $2 million.

Woolworths' going under is likely to be the subject of water cooler talk at other publishers as well, with UK tabloid The Sun suggesting earlier this week that both Microsoft and Nintendo could end up losing the millions of pounds currently owed to them by EUK. Truly the game industry is not insulated from the effects of the world's ongoing financial hardship. It's just unfortunate that in this global crisis, there is no Elika around to pull publishers back up to safety.

Tags: europe, retail, ubisoft, woolworths

Reader Comments (Page 1 of 1)

Sora @ Dec 11th 2008 8:05PM

From this article, it's impossible to tell WHY they're going to lose $2m.

jonaswan1 @ Dec 11th 2008 8:13PM

I think the main reason is as follows: Woolsworth bought a whole lot of Ubisoft crap on credit. Woolsworth can't pay back Ubisoft (for obvious reasons). Ubisoft loses a ton of money.

Strategy_Panda (the artist formally known as Titanium_Orchid) @ Dec 11th 2008 8:14PM

I also found the article kind of confusing.

It might be that Woolworths' distribution branch owes Ubi money.

"...Nintendo could end up losing the millions of pounds currently owed to them by EUK"

I would guess the same goes for Ubi

Superstar90 @ Dec 11th 2008 8:05PM

I guess their "BIGGEST SALE EVER" wasn't BIG ENOUGH.

Jon2309 @ Dec 11th 2008 8:06PM

Yeah, I'm losing my job in 2 weeks. Woo.

Hooray It's Rob! @ Dec 11th 2008 8:10PM

And stay out of Woolworths!

Alien Lord @ Dec 11th 2008 8:11PM

Ubisoft, MS, and Nintendo will survive as will the games industry but still this must sting.

Kirmas @ Dec 11th 2008 8:12PM

Woolworths buy stock off EUK, EUK off publishers. Woolworths cant afford to pay back EUK, EUK cant afford to pay back publishers. Its a knock on effect. But for the places that dont go via EUK (GAME, Gamestation, independents), its a massive boost, as publishers are now forced to redirect all that stock via these outlets

BigD145 @ Dec 11th 2008 8:16PM

What's this? More companies either loaning or borrowing and somebody gets the shaft as bad business decisions are made?! Say it isn't so. It's unpossible.

NOT ME @ Dec 11th 2008 8:18PM

i remember when we have woolworths in nj

Cox Attack @ Jan 7th 2009 2:21AM

You too? I had one in New Jersey by me. Right next to the bowling alley haha.

Ignatius @ Dec 11th 2008 8:47PM

I love that movie.

Ignatius @ Dec 11th 2008 8:48PM

And I tried to reply to a comment. Joy.

O' Joystiq's good commenting system, where art thou?

dumbomorton @ Dec 11th 2008 8:50PM

woolworths owns EUK thats the problem

Jake B @ Dec 11th 2008 8:56PM

I didn't know Woolworth's is now Footlocker in the US. They are still doing pretty good off of Jordan's I would think.

Diskoboy7 @ Dec 11th 2008 9:29PM

Woolworths. Now that's a name I haven't heard, in quite a while.

I guess I'm gonna be the first old fart to mention it's little brother, Woolco. The Wal-Mart of the 1970's.

Oh, how I miss that store. Atari 2600 games were usually about $5 cheaper than most of the other stores. All (U.S. Stores) gone in 1984.