Gen Con Files For Chapter 11

Heartless Gamer writes to tell us that Gen Con LLC announced late last week that they have filed for Chapter 11. This move will not affect the still profitable Gen Con Indy event which will still happen August 14-17, 2008. "This action became necessary as a result of significant unforeseen expenses associated with attempts to expand its core business to encompass externally licensed events. [...] The protections afforded by Chapter 11 will allow Gen Con to further its efforts to address its liquidity needs, preserve value for its creditors and explore strategic alternatives for the business." Evan writes to add that this is the result of LucasFilm suing GenCon.

Comments

This is a result of Lucasfilm litigation

[Obiwan Kenobi]

Just FYI, this filing is a direct result of Lucasfilm suing Gen Con for a lot of deception regarding "Celebration IV" that occurred last year.

As taken from this story on TheForce.net, here is a summation of the charges:

1. Gen Con failed to uphold its legal obligations in terms of financial reporting, accounting and payments to Lucasfilm ($500,000 in damages)
2. Gen Con did not give auction proceeds to Make-A-Wish as they had agreed to do ($150,000 in damages)
3. Gen Con did not give Lucasfilm their share of the auction proceeds ($150,000 in damages)
4. Gen Con did this all unjustly ($150,000 in damages)"

Re:This is a result of Lucasfilm litigation

[Otter]

2. Gen Con did not give auction proceeds to Make-A-Wish as they had agreed to do ($150,000 in damages)

If true, which may well not be the case, that's got to have a pretty big load of bad karma attached to it...

Re:This is a result of Lucasfilm litigation

[Afell001]

A friend of mine went through a nasty divorce a few years back, and his wife was able to hold up the divorce proceedings for nearly a year by filing for bankruptcy. This made it so that she was able to collect separate maintenance checks (half his paycheck, since she "conveniently" quit her job a couple months before she filed) as well as live in the house he was paying for and forcing him to move out. Since the house and mortgage was in both their names, it was also tied up in the bankruptcy, which left him in legal limbo when he tried to find another place to live (not many landlords will rent to someone whose house is tied up in bankruptcy and has several liens against it). Needless to say, he paid through the nose to finalize the divorce. She, on the other hand, took several trips to Vegas and at least one trip to the Bahamas with her new boyfriend, while he was living at my house eating PBJs and ramen, and working like a dog to keep his good credit from being completely destroyed. Yep, I know full well about this tactic. It's a nasty way to stave off any kind of court proceeding until it is resolved. My friend ended up paying half his income for a year and a half (roughly about $150,000) just because of it, and then spent most of the rest of his income paying for lawyers, child support and making payments on a house he couldn't live in. Be careful who you marry, is all I can say if you are looking for a moral to this story.

d20

[Webs 101]

I guess Gen Con failed the saving throw.

Anyone else hope

[Moryath]

that this might, JUST might, get them to move GenCon back to Milwaukee where it belongs?

I mean, seriously - they bitched and moaned about "not enough hotel space" being the prime factor when by moving it just one weekend later they WOULDN'T HAVE TO COMPETE FOR HOTEL SPACE WITH FUCKING WISCONSIN STATE FAIR.

Then the very next year at GenCon Indy - "not enough space in the dealers' room, we're growing out of all the hotel space we can find in Indy..." bah.

Move it back to Milwaukee where it belongs. I miss taking my buddies to The Safehouse.

Re:Anyone else hope

[Peter Mork]

As much as I love The Safehouse and its back door, you do realize that GenCon is called GenCon because it belongs in Lake Geneva, right? I fondly remember MECCA as much as the next guy, but to equate that location with GenCon denies the history of the event.

This was a triumph

[Anonymous Coward]

I'm making a note here... HUGE SUCCESS!

If it's true

[rossz]

If what LucasFilm says of GenCon, then they need to be crushed. Stealing money from dying children? It would be very difficult to do something more scummy.

Re:Why am I not surprised?

[Sitnalta]

Well how do you know all convention organizers are thieves and liars? Do you know them? Just because some conventions are questionably run doesn't mean all of them are. Every aspect of PAX isn't personally run by Gabe & Tycho, but they still call the shots. So if there was anything shady going on they would, and have, excise it immediately.

Re:Why am I not surprised?

[byennie]

Really? Do you know the people who run GenCon?

GenCon is owned by Peter Adkison, the creator of Magic and former CEO of Wizards of the Coast. He's a gamer through and through and one of the most approachable guys on the planet of his stature. Peter made plenty off of WoTC's sale to Hasbro to do whatever he wanted - GenCon wasn't lining his pockets by any stretch of the imagination. This is the same man who responded to my unsolicited emails for help starting a gaming company. He answered any question I had, connected me with his personal contacts, and in return - just suggested that I pay it forward. I don't know anything about GenCon's legal issues, but I suspect neither do you.

I don't know the depth of their dealings. But unless you do, perhaps you should refrain from making generalizations. God forbid you ever achieve such a level of success and find people throwing stones at you. Reserving judgement isn't nearly as sensational, but it's often warranted.

Re:What the hell is a Gen Con

[spun]

Oh man, my finger slipped. You know, the apostrophe, it's so close to the... ah... Look over there! It's Bigfoot!

Re:Why am I not surprised?

[Irish_Samurai]

I thought Richard Garfield created magic.

Re:They aint seen nuthin yet

[mlund]

Peter Adkison owns GenCon.

Hasbro owns Dungeons & Dragons.

Hasbro bought Peter Adkison out of Wizards of the Coast (who owned D&D) over half a decade ago.

Re:Why am I not surprised?

[Fozzyuw]

ALL "conventions", no matter what industry/hobby they are about, are run by thieves[...]Seriously.

That's because it takes too long to level a Paladin.

Cue Martin Short nervously puffing on a cigarette.

[filthpickle]

while representine GenCon

"maybe the kids wanted to be robbed....maybe that was their wish..."

no idea why that image popped into my mind.