David Beckham’s former esports team owes millions after closure
Creditors of an esports company initially backed by David Beckham are set to be left out of pocket to the tune of more than £2m after the firm went out of business.
Guild Esports, which owns a multi-story gaming venue in Shoreditch, officially entered voluntary liquidation earlier this month after first being put up for sale on an insolvency marketplace in August.
The business was set up in 2018 and employed esports teams which competed in popular gaming tournaments such as Fortnite and FC25. It also had partnerships with Sky Broadband and Subway.
The firm became the first British esports company to be publicly traded after floating on the London Stock Exchange in 2020, with Beckham among its biggest shareholders.
At the time, the business had a market capitalisation of almost £40m.
However Guild Esports saw its stock crater more than 90 per cent from its peak after posting consecutive years of losses.
Its last trading update showed losses contract to £1.8m for the six months to end March 2024, after a string of cost-cutting measures, while revenue fell more than 40 per cent to £2.1m “reflecting a challenging macroeconomic environment.”
The company was sold in August last year in a £2.1m deal to DCB Sports, a California-based investment firm which also holds stakes in Venezia FC and Monaco Women’s football team.
Now, a new document filed with Companies House has revealed the firm’s creditors are set to loose out on a combined £2.3m.
The statement of affairs document shows that unsecured non-preferential creditors are to miss out on £1.7m in total.
A total of 18 employees are also owed £125,525 all together while HMRC is owed around £540,000.
David Beckham’s former team apologises
In a statement released in August, the company said: “After careful consideration, we must share the difficult news that Guild Esports & Gaming will be closing.
“Despite our best efforts, financial challenges and the current economic climate have made it impossible for us to continue operating.
“From day one, our mission extended far beyond competition.
“We’ve been privileged to champion representation and create opportunities within our industry using esports and gaming as powerful tools for inspiration, inclusion, and empowerment.
“We recognise that this closure disappoints the community that believed in us, and for that we are sorry.
“However, we hope this does not overshadow the work our dedicated staff delivered throughout our journey.
“This outcome is also not a reflection of the support of all our partners who supported our work in the esports space alongside us over the past five years.
“To everyone who became part of the Guild family, from our fans and players to staff and partners – thank you.
“Your passion and belief helped us build something truly special.”