Gen Con LLC Community

Friends:

 

Today Gen Con is filing for Chapter 11 Bankruptcy protection.

 

Essentially what happened is that we lost a lot of money this year running a licensed non-Gen Con event.  We owe several companies money from this show and it’s going to take time to pay them off.  To protect ourselves from the more aggressive companies we have been forced to seek protection from the courts.

 

While this is certainly an unfortunate development it will not impact our ability to operate Gen Con Indy, nor should it affect our licensed Gen Con events in the UK, Paris, and Australia.

 

The way a Chapter 11 works is that we negotiate a long-term payment plan with our creditors with the assistance of the US judicial system.  The courts will closely oversee our business affairs to make sure we are running the company prudently and that we have a reasonable plan to pay everyone off.  Which we do. The courts also protect us from aggressive creditors so that we can continue operating.

 

Gen Con LLC will get through this strong at the other end.  Our fundamental revenue generating asset is our Indianapolis show, Gen Con Indy.  This show is profitable enough to cover our direct costs, our overhead, and have some funds left over to pay off the debts from the licensed show.  It will take some time, but this is one of those situations that the Chapter 11 filing was designed for, to help good companies get through a rough situation.  Everyone will eventually get paid and business will return to normal.  In the meantime, Gen Con Indy carries forward without interruption.  Heck, if the airline companies can do it, why not us!

 

I’ve learned some hard lessons about the event business over the last few years.  After trying to get Gen Con So Cal to work, and then losing money on this non-Gen Con event, I’ve learned how difficult it is to run a “big show” and make money.  It’s a highly speculative affair where you’re never quite sure until the show’s over whether you made money or lost, mainly because you just don’t know how many people are going to come and for how long.

 

So, going forward our organization is going to focus on what we do best: managing Gen Con Indy, a healthy, vibrant show that has been growing nicely ever since moving to Indianapolis.

 

Here is a link to the press release we are issuing today describing this filing:

 

   http://gencon.com/2008/corporate/news-pr/releases/2008/2008.02.15.Press.aspx

 

As you can probably guess, there’s not a lot I can say about this publicly, due to it being a sensitive legal matter and all.  I’m traveling this coming week to New York Toy Fair, so my access with be spotty, but I’ll be sure and check in at least once a day to field questions best I can.

 

Peter D. Adkison

CEO, Gen Con LLC

 

Wow... I'm pulling for you Peter.  GENCON is the bright center of the universe for many of us.

Wow. Thank you so much for letting us know! GenCon is the highlight of my year, I would be crushed if it had to go away. I'm glad to hear that won't be happening.

This is unfortunate.  Good luck.

What is unfortunate are the accusations that were made public in the document AND IF TRUE the potential black eye it could leave on GenCon...

Hopefully there is proof to exonerate GenCon and ease the appearance of what seemed (to me at least) to be the most concerning accusation made in the legal filing (Auction Agreement).  

I hope this issue is put to rest quickly and GenCon is totally exonerated. 

Peter,

If there is any statement you can make about the Charity issue...I would hope this goes public very soon.  But given the complexity of our legal system, we should not expect anything and wait for the judical decision.

Good luck.

G

Peter keep up the good work and keep your head held high.  You have tons of support here from the fans.

Just remember even Trump filed bakrupcy at one point and look at him now, he's a TV star!  Maybe after this is all over you could do a GenCon apprentice.  I'd be in line for a shot!

Peter,

There are lot of us behind you. Good luck, may the best happen for all of us. I know this is a labor of love for you and Melissa. And the rest of us, too. 

 

Good luck Peter and Melissa!  Everything will work out-- Gencon is too awesome to not work out...

Stay in high spirits. I look forward to the show as always!

I think that you already know that most of us believe in you and are pulling for you on this.  I know that I have faith.  I've talked to you enough times to know that you're a very prudent business man so I have no doubt that you will get through this and are making the right decision. 

Thank you very much Peter for coming in here and letting us know what is going on.  I think it goes a long way in letting us know that you really do care about those of us who love GC so much.

It looks like my post in the "Bad Luck. Worse Luck. Worst Luck." thread wasn't too far off. I wasn't very surprised to hear that Gen Con LLC is filing for bankruptcy because it's probably the only course of action that will give the company a chance of staying in business. I'll keep my fingers crossed that everything will work out and that my friends and I can continue to enjoy Gen Con for many more years.

Thanks for keeping us in the loop, Peter, well, as much as you can anyway. I've worked for companies that told their employees everything was all sunny and rosy one moment and then shut down shops and laid off their people the next. It really left a bad taste.

But you and Gencon are different - you're upfront with your people and your guests.

I might not be able to make every Gencon but you have earned my respect and trust.

 Thank you.

This is very upsetting news.  I really hope that Gencon pulls themself out of this, restructures and stays alive. Sorry, I can't possibly sit up her and say good job to any ceo . When you have a convention as successful as gencon that pulls in people from all around the world every year and a 40 year legacy, you have to do a pretty amazing job to drive that company into bankruptcy.  This is more about making sure that, unlike with the lucas arts filing, that Gencon notifies its users first.  I hate that Mr. Adiksons business teeth were cut on the failures of Gencon.  While Pete was unsuccessfully trying to expand Gencon, other cons, once local have gained momentum with their more focused appeal.  I really hope that Gencon comes out of this, with a more refocused Indy con. 

Dontadow, this has nothing to do with someone running a company into bankruptcy.  This is because of a lawsuit (from running Star Wars Celebration) that has the potential to tear the company apart.  This is protecting their assets and the one part of the company that 1) means something personal to Peter and 2) is a successful money making model.  It is successful because Peter put a lot of hard work and money into it, his own money.  Maybe you need to actually read his history sometime.    He is a very smart business man and has a lot to show for it.  He earned very dollar he's made the hard way and I have no doubt that this is just another tactical move to help win the game and not a sign that he's failing. 

I couldn't agree more Sherilyn. Even though I dont know Peter, I do see this as a means to protect the Gen Con corp. I would like to think that 40 years of conventions cant be wiped away by one lawsuit but we are talking Lucas so...

Lucas Arts has always been VERY protective of their property. Did you not have concent to conduct a Star Wars convention? Make me wanna second think about trying to get a winter convention started here in Vincennes. (Not Star Wars, just games in general.)

Stran Ger:

Peter keep up the good work and keep your head held high.  You have tons of support here from the fans.

Just remember even Trump filed bakrupcy at one point and look at him now, he's a TV star!  Maybe after this is all over you could do a GenCon apprentice.  I'd be in line for a shot!

Yes!!! All day everyday. The Game Channel

I actually blogged about this at another gamming site.

Best of luck and kudos for working to make things right with the creditors.  I am specially glad to hear that it won't effect Indy... whew.  (Selfish, I know)

Bubba Ho-Tep:

Thank you very much Peter for coming in here and letting us know what is going on.  I think it goes a long way in letting us know that you really do care about those of us who love GC so much.

 

Ditto. Thanks for taking the time to post this Peter.

Thank you Peter, for the post.  We look forward to seeing you at Gen Con for many years to come.