CS:GO organization Copenhagen Flames files for bankruptcy
by Danny Craig ·
Copenhagen Flames, a Danish esports organization, has ceased operations due to a lack of funding, resulting in bankruptcy.
- Former Flames CEO Steffen Thomsen announced on the team's official website on May 1, 2023, that the organization had filed for bankruptcy on Friday, April 27, thereby ceasing operations after seven years. All its employees have been let go, and its Counter-Strike: Global Offensive (CS:GO) roster has been released as unrestricted free agents.
- During 2022, the organization was in a "place where we didn't have to fear for [its] financial stability," thanks to increasing momentum from solid competitive performances and a growing fanbase. However, to continue to grow, it needed to ride the line financially to invest in increasing its revenue streams, which did not go well, as it failed to secure even small partnerships in the past 6–9 months. Despite efforts to cut costs to keep the organization afloat and even open itself up to more investors, it was unable to secure funding.
- Former team members began mass purchasing the team's CS:GO stickers from the Steam Marketplace ahead of the public announcement, which some have suggested could be considered insider trading, though it is not illegal in this case. The reason for this is that similar to the Titan holographics, which are currently the most expensive stickers in the game, the price of the stickers could spike and remain high now that the organization is unlikely to return in the future.
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