Guild Esports, one of the most prolific organisations in the United Kingdom, has reported deepening financial woes in a recent update. With a warning being issued to shareholders, Guild Esports has advised that the firm has less than £25,000 ($31,000) left on hand. This unfortunate news comes following the revelation that Guild’s share price had bottomed out at a record-low.
Explore the Options
In a statement, Guild Esports’ representatives advised shareholders that it was seeking additional funding to stay afloat:
The company is actively exploring a range of options to meet its short-term liabilities. These include securing additional funding, negotiating improved payment terms with creditors, and further cost reduction initiatives.
Guild Esports has long been represented by David Beckham, who came on board as an investor and an ambassador, appearing in commercials and promotional materials for the brand. Recent reports highlighted that while his share value in the firm has dwindled, he has made bank as an influencer attached to the Guild Esports label.
In the recent financial update, it was revealed that Guild Esports has ‘burned through’ £26 million ($33 million) in just three years, while at the same time ‘only’ pulling in around £14 million in revenue. The organisation hasn’t been the most successful in the esports space, and despite a solid following, it hasn’t managed to grow too big in the industry.
Time will tell what decisions the board will make to right the ship, but for now, it looks as though a major shift in the form of a merger might be the only thing that’ll save Guild.
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