CS:GO organization Copenhagen Flames files for bankruptcy

Copenhagen Flames, a Danish esports organization, has ceased operations due to a lack of funding, resulting in bankruptcy.

The details:

• 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.

More esports news:

• In February, the Guard, a Kroenke-owned organization, laid off its creative, social, and content staff. It is reportedly looking to sell both its Overwatch League and Call of Duty League spots and will cease operations after their respective seasons conclude. Its VALORANT team was also rumored to be on the way out, but it still competes in the North American Challengers circuit.
• Counter Logic Gaming (CLG) was sold to another North American organization, NRG Esports, which also acquired its League of Legends franchise, with Madison Square Garden Sports becoming a majority shareholder. Employees at CLG were informed that they would be laid off as a result of the sale, except those in its League of Legends vertical. The exact number of people affected is unknown but reports claim that "seemingly all" of its employees were let go.
• 100 Thieves went through a round of layoffs in January, letting go of around 30 people, including several senior staff members. Chief operating officer John Robinson explained on Reddit that the team's "biggest source of revenue" was still its partnerships, with Juvee and Higround "healthy and growing."