Danish esports organization Copenhagen Flames files for bankruptcy
Danish Esports organization 'Copenhagen Flames' has filed for bankruptcy. According to the CEO Steffen Thomsen, the organization failed to gather enough fundings to run its operations successfully.
Copenhagen Flames, a Danish CS:GO organization has filed for bankruptcy and laid off its all personnel. Steffen Thomsen, the CEO of the Copenhagen Flames released a statement on the official website explaining the circumstances that led to bankruptcy. He mentioned that the organization failed to find funding to run the operations successfully.
Few weeks ago, Copenhagen Flames announced that the organization has been looking for funding of 5 million DKK ($740,000 USD) to provide stability and launch a series of initiatives to makes sure that the organizations remains profitable in the upcoming years.
The official statement released by the CEO Steffen Thomsen mentioned that the organization worked tirelessly for the past six months to avoid bankruptcy.
"For the past 6 months we have worked tirelessly to avoid this outcome but unfortunately we have failed. And for that I am deeply sorry."
Steffen added by apologizing to the fans and community by saying that it was his responsibility and he feels bad about the ongoing situation.
"In the end it is my responsibility and I feel like absolute shit that it has come to this. I have gone through our decision making the past years and I struggle to pinpoint exactly what we did wrong. Following our Major participation in 2021 and 2022 our club had great..."
Dear Flames fans and followers, it has been an absolute privilege to be a part of your lives for the last 7 years.
— Copenhagen Flames (@CPHFlames) May 1, 2023
We have filed for bankruptcy.
Please read our statement here:https://t.co/ncB6wh2NSl
Thank you and BringTheFlames ♥️🔥 pic.twitter.com/h29Ssp3hlv
Copenhagen Flames was launched in 2016 with a view to develop young CS:GO players and later sell them for the profit. In 2021, the team made history by qualifying for PGL Major Stockholm, the similar performance was carried in 2022 when the team qualified for the playoffs of PGL Major Antwerp. For the 2023 BLAST Paris Major, the organization assembled a new set of players but failed to qualify for the tournament.
It's surprising to see that a well established esports organization like Copenhagen Flames has not able to secure enough funds to run its operations smoothly. These things clearly indicates that it is essential to have stronger vaults to sustain in the competitive market.