The esports organization Copenhagen Flames no longer exists. The team filed for bankruptcy after a difficult few years during which it was on the verge of financial insecurity. Now, following the continuation of the current financial crisis, the team has had to lay off all of its staff and shut down its operations.
Steffen Thomsen, managing director of the Copenhagen Flames, wrote on his blog: “Last week on Friday I declared Copenhagen Flames bankrupt and fired all staff as we could not find funding to run our club. Over the past 6 months we have worked tirelessly to prevent this outcome, but unfortunately we failed. And I’m deeply sorry. In the end, it’s my responsibility and I feel like absolute shit that it came to this.
Thomsen explains in the article how the team approached growth methodically and sought to avoid the pitfalls of the esports industry by becoming a revenue-generating business elsewhere, but how that also failed in practice.
“And so we are here today, having declared bankruptcy. The Copenhagen Flames are no more. It has been an absolutely heartbreaking, frustrating and deeply sad experience to let go of so many incredible people who have worked tirelessly for us, who are extremely passionate about the club and that they would do anything to make things work. This has been one of the worst experiences of my life and that of my co-owner, Michal. It was an absolute pleasure to working with our team, our players, our coaches and our management team, and letting go of such a special group of wonderful and talented people is very disappointing and heartbreaking.”
Thomsen also said the organization has done what it can to help those who lost their jobs because of this procedure, and that while it didn’t end as he hoped, “The Flames family is special and something I will cherish forever.”