Maelstrom Games is no more. It seems that their debt was bought by Wayland Games Ltd, and later the debt was called. Regardless of how that looks (ruthless at first), please read the following letter that details out what happened from Wayland Games Ltd. I have provided a link to the official letter as well.


http://www.waylandgames.co.uk/downloads/Maelstrom-Action.pdf

09 Nov 2012
All in the Gaming Community,
As news of our action regarding Maelstrom Games is public we would like to take a moment to explain the
steps we have taken, and why.
Some time ago we became aware of discussions at various events where there was a constant chatter about
the financial situation that Maelstrom Games found itself in and the significant debts it suffered from. We
ignored them to begin with but it seemed that in the events scene in the UK it was being discussed openly. We
noticed that tickets were being sold a year in advance for some events. We then see hundreds of thousands of
pounds being pushed into a miniatures line whilst Maelstrom Games still owed significant monies to suppliers.
Suppliers we (and countless other retailers) share and rely upon for the timely distribution of product to fulfil
our customer orders.
This industry is in our opinion, too small and too close for such a situation to occur, as the wider implications
would mean hundreds of people - customers - you - potentially losing the money you had paid out for product
and event tickets.
It was clear that Maelstrom Games Limited were in significant trouble, yet they continued to invest in other
areas despite still owing very significant and growing amounts to suppliers causing a great deal of pressure on
the supply chain.
In early May we decided to offer to buy Maelstrom Games, including honouring all liabilities for the business.
Our email was ignored. In late May a follow up email was sent and again that was ignored.
We therefore looked to protect our customers by looking to protect the supply chain and also ourselves (as
well as any of the other independent retailers who rely on this same supply chain) from the collapse of a major retailer, and managed to purchase the main debt that Maelstrom owe, in an attempt to force a resolution,
rather than allow an uncontrolled collapse and all the knock on effects that would unleash on the industry.
The situation is complicated and there is quite a process to move through, but we are undertaking this action
with the best of intentions for our customers, customers of Maelstrom Games and our supply chain, and will
endeavor to keep all affected notified of developments as they occur. We will be issuing information Via our
Facebook Page: http://www.facebook.com/WaylandGamesLtd
And by email, subscribe here: http://eepurl.com/p-Wg1
Wayland Games Ltd

52 Comments:

  1. Hopefully they don't drag Wayland down with them! Although, that is a good move by Wayland games in order to serve the community.

    ReplyDelete
    Replies
    1. No sarcasm and trolling intended, but Wayland would surely not bought the debt, if there were no further business considerations beyond saving the industry from collapse.

      Factoring is a serious business, and can be beneficial in multiple ways for Wayland Games.

      Delete
  2. Basically "We picked up the slack so that these dumbasses would not hurt gamers around the world"

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  3. I don't know Maelstrom games so I am clueless as to what he means by investing in another game system. And how does having Maelstrom go under affect other suppliers?

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    Replies
    1. As I understand it, if Maelstrom games were operating in debt, and these debts were spiralling, then the suppliers are not getting their money. If the suppliers are not getting their money, then they cannot cover their costs. if they cannot cover their costs then they have to scale back production, or increase prices to meet the deficit, they could also go out of business too, depending upon their own circumstances.

      If Maelstrom went under while still owing major debts to their suppliers, then their suppliers would likely not get all that they owed, with the effects stated above. For smaller game suppliers, this could bring them down too etc.

      With Wayland games purchasing the debt, and then calling it in, they effectively controlled the situation, and are taking one for the team so to speak. By the sounds of things, Wayland knew what they were doing, and knew they could take the hit.

      Delete
    2. There is no hit to take. As a creditor, Wayland can claim stock and assets of the business at a greatly reduced cost. Considering 99% of this they can then put up at retail price through thier own store. Wayland will probably make a fair bit of money out of this, as I imagine there is signifcant stock, let alone other assets which will get divided up. By the sounds of it they have the vast majority of the debt too, so will get the biggest slice of the Maelstrom pie.

      Anyone ever heard the expression about bigger fish? :)

      Delete
    3. What stock? What assets? The company was worth minus £130k at the end of last financial year, and is unlikely to be worth any more now!

      Delete
  4. So where is the guy thatt said he was friends with Maelstrom owner, that nothing was wrong with them? Still claiming they are not thieves?

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  5. Good move + 1 for using capatilism for good of our gaming comunity.

    ReplyDelete
  6. Taking a hit to ensure the greater good of the game industry, we likes

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  7. Hmm...Maelstrom Games offered to make payments of the debt to Wayland in the same way they had been making payments to Simple Miniatures Games, but was denied by Wayland.

    Head on over to Mealstrom Games website to read what is on their site.

    Sounds like Wayland has sugar coated a hostile take over to me. Congrats to Wayland for destroying a competitor.

    My condolences to the people of Mealstrom Games who lost their jobs!

    Bellumvinco

    ReplyDelete
    Replies
    1. Are you kidding? These crooks who were taken over deserve all they get. Incase you didn't notice they were robbing people blind. They made their bed, now it's time to lie in it.

      Delete
    2. I'm sure Wayland is not a saviour of the industry, but the previous owner of the debt did release a own statement. Maelstrom did NOT pay on time and it was safer for their business to sell the debt to another corporation than receive no money at all.

      Delete
    3. Maelstrom were crooks, good riddance. You need to do a little more research for yourself and not take their word over the rest of the hobby's.

      Delete
    4. "Hmm...Maelstrom Games offered to make payments of the debt to Wayland in the same way they had been making payments to Simple Miniatures Games"

      Oh you mean how they weren't making any payments at all? Anon, you can be a stupid mofo sometimes.

      Delete
    5. No, I mean how they were still accepting payments from customers while not shipping or ever having the intention to ship to them. They were paying a small amount of money (relatively speaking) to Simple Games while trying to make every dime they could before the imminent demise by screwing anyone unlucky enough to buy from them. You must be very gullible to believe otherwise. Good job to Wayland and if they increased their market share at the same time well that's even better.

      Delete
  8. business in ruthless guys remember its all about the money all said and done.

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  9. 1. Wayland acted within legal means by acquiring Maelstrom's debt and calling it in. Maelstrom would not have been in that position if they had not made poor business decisions.

    2. Wayland was not acting as a "good samaritan" for the gaming community. They were making a good business decision to acquire inventory and eliminate a competitor.

    ReplyDelete
    Replies
    1. While your points are both true, it does have the additional effect of safeguarding smaller suppliers (as stated above)- even if that wasn't Wayland's first priority (despite what they said).

      Basically it is a win for Wayland, a win for the smaller suppliers that Maelstrom owed money to (Simple Minis for one at least), and a win for Gamers.

      Not so good for Maelstrom employees though. :(

      Delete
  10. Worth reading the maelstrom website, doesn't look like Wayland want to Paint it.

    https://www.maelstromgames.co.uk/

    Still, I think there was dodgy behaviour on both sides?

    ReplyDelete
  11. Wow, maelstrom sounds like a bunch if scumbags. Glad I never ordered from them.

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  12. What do either of them make?

    ReplyDelete
  13. I'm guessing that Wayland felt that they were doing what they should do for the following reasons:

    1) Protecting Wayland's ability to get stock from the smaller vendors Maelstrom owed money to and would potentially fold due to unpaid bills.

    2) Protecting Wayland's ability to continue to sell to its existing customers while also potentially expanding its customer base by eliminating one of its competitors.

    As others have said, Wayland may be trying to sugar coat it to say "we did this to protect the community" but it really comes down to revenue. Wayland felt that the short term hit (paying off Maelstrom's debt) would lead to long term gains (more customers, healthy suppliers, etc.).

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    Replies
    1. nothing wrong with that. it's sort like an old rotten tree, best to cut it down before it falls on something

      Delete
  14. Everyone buy Wayland games stuff! I ordered 80 zombies from them last week, glad I picked them now :)

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  15. Regardless of Waylands motives being truely altruistic or not... they did indeed do a service to the hobby. If they should profit from this then even better. People should be rewarded for doing good.

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  16. I have read both side's of the story, and I feel what Wayland games has done is correct and good for the gaming community.

    The gaming industry at the moment is going through a boom but what Maelstrom Games has done is invest in other thing's to soon and quickly hoping these thing's would in turn pay the bill's. Obvisouly this has not worked and the debt was brought to protect the gaming world.

    I feel that the gaming community will suffer slightly from this, but not as much as it would have if Wayland games had not done what it has. I just hope that Wayland games don't suffer for this.

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  17. Just remember that the guys that scammed people and transfered as many assets as possible to a new company started a new webstore (Eye of the Storm). So don't buy from them.

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  18. In doing this haven't Wayland made it so that Maelstrom cant complete the customer orders that they were trying to?

    ReplyDelete
    Replies
    1. Yes, but WG will fulfill them and there's very little evidence that maelstrom had any intent to fulfill most of those orders anytime soon. Maelstrom will still fulfill some orders (see their site) but most are now the responsibility of WG.

      Delete
    2. You are pretty delusional if you think WG would send out basically free stuff because some people got scammed by a totally different company.

      Delete
    3. Gotta agree there, no ay is Wayland responsible for fulfilling Maelstroms old orders. They bought the company debt, not the company itself.

      Delete
  19. May i just add as a minor point that for all the negativity regarding GWs business plans and strategies. It is all to stop things like this happening.

    ReplyDelete
    Replies
    1. Eh? How do you figure?

      I thought it was about making money...

      Delete
  20. Wayland games made successful 'look out, Sir!'

    Well Done Wayland!

    ReplyDelete
    Replies
    1. Hahahaaaa... made my day

      Delete
  21. Think there are allot of wayland employees posting on this, buying out another company's debt then calling it in within a week is a dodgy tactic however you want to paint it im glad i've never bought from either company.

    Guyver 3

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    Replies
    1. shifting your assets into another company with a different name after debt is accrued is a "dodgy tactic" Furthermore its highly illegal....so yeah screw the bastard who runs maelstrom/ eye of the storm.

      Delete
  22. To those still wanting to defend Maelstrom, I'm no expert on UK corporate law, but at least around here it is a CRIME to wilfully postpone declaring bankruptcy (or applying for corporate debt restructuring) after it is apparent to either the management or the owners that the company is (or will be) insolvent.

    Selling tickets a year in advance causes the advances received to become debt (liabilities) in the balance sheet. The same goes for advance sales of items to be delivered only during the next accounting period. Advances may not be recorded as "income" in the income statement before the event actually takes place or the physical goods change ownership. Of course, this is assuming they even followed good accounting practices in the first place.

    So what they were doing was replacing accounts payable in their balance sheet with "hidden" debt (other current liabilities), and especially with less powerful debtors (ie. the customers, who would supposedly not be as eager - or even know of their rights! - to file for bankruptcy/reposession/reclaim/etc). Meanwhile their actual business was still making a loss which they could not (legally) cover with the "advance sales", so pretty soon they would have run out of this way of financing too and would have had to sell events or items even more in advance or actually file for bankruptcy/insolvency.

    Yes, Wayland did manage to eliminate a competitor (one that was already breaking the law, and thus not playing fair in the first place) and acquire cheap inventory, but at the same time the suppliers now get actually paid and gamers are no longer swindled by "advance orders" and "advance tickets". Sounds like a win-win-win situation to me, as far as there can be one in the business.

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  23. Don't want to get into a discussion on economics as its neither constructive nor what this blog is about, if your talking about crime take a look at what 90% of our banks have been doing, i don't condone waht maelstrom did as they were obviously trying to patch leaks in their sinking ship and keep themself afloat and their employees in work.

    Lauding the actions of wayland isn't correct either they did what they did for purely business reasons, they crushed the competition and say what you like about maelstrom and their unfortunate business practices wayland aren't the saviours of wargaming

    Guyver3

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  24. Another one to watch out for in UK is Mythreal aka Total Wargamer. I am not the only one to have an order unfulfilled, now running at over 30 days. I have raised a dispute with Paypal, so hope to at least get money back, eventually...

    ReplyDelete
    Replies
    1. Me too, in september.
      I waited 40 days or so, then started a paypal issue ando got my money back
      Don't trust them!
      I think they're in financial trouble.
      PS if Waylad bought their debt , it is not altruism for sure , it's simply buisness, they get all their customers ....
      Anyway, like Adam Smith says, making buisness for yourself can benefit other too

      was it smith? well i hope so ! hehehe

      Delete
  25. People are speaking in such absolute terms.

    Do people not know about that new hobby retailer 'Eye of the storm' who coincidentally started up recently, with a website owned by the same person as the Maelstrom one? You may notice a few similarities between the two site layouts too.

    They're not gone, they've invested their money in starting the new company and the miniatures line and let Maelstrom run down to buy themselves time to jump ship.

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    Replies
    1. I don't really get this. They're setting up a new internet retailer when it's all over the internet that they took money without supplying products? How many people do they expect to fool?

      Delete
    2. No they've shifted their assets to a new company in a vain attempt to protect said assets from their debtors....this is illegal and the bloke is going to get screwed once the law is drawn in.

      Delete
  26. Maybe this clears the matter up a bit:

    http://www.simpleminiaturegames.com/index.php?page=900

    It's clear - to me at least - that maelstrom did what many before them did: get in as many cash as possible in shortest time, transfer it to a new company and then leave it all behind: the betrayed customers, the debts with suppliers, the staff. Seen that in my area with middlesized industrial (1000 workers) companies. These crooks would be denied any company activities if they didn't open another company before the failing one goes finally bankrupt (at least here in Germany), so they do it this way. It just stinks and I feel for the above mentioned people that got hit by these practics. I don't like wayland but applaud them for this move to end the masquerade of maelstrom.

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    Replies
    1. This.

      I've actually been employed by a company where this practice took place, leaving myself and many other employees without pay for 2 months and countless suppliers out of pocket. People say that business is ruthless but in actual fact it's not business in itself that's ruthless, it's a choice few unscrupulous individuals that make it so. This is why we need stricter regulation. Business leaders (like bankers) bemoan the restriction and bureaucracy, claiming they can effectively self-regulate better than the state. Well we've tried that. It doesn't work. It never will.

      Delete
  27. Hang on a minute, everyone stating that Wayland didn't do anyone any favours except themselves and they are the bad guys needs to reread the Maelstrom webpage notice. They were offering to pay off a £100k debt from charges of £500 per calendar month. Now, I'm a few credits shy of a maths degree but that would take 200 months to pay off. That's 16.5 years again if my maths skills aren't completely incompetent. Who, in any walk of life would find that acceptable? Cos I wouldn't. Not when it appears that asset transfer has been taking place. It's pretty bad business to be taking orders it appears you have been unable to fulfil. It's even worse to buy stock that you have no intent of paying for.
    Yes, Wayland acted from a stance of business preservation and also attempted to buy a market share at the same time. Big whoop. Did the guy that invented iTunes work for Apple when he created it? No. It's what sensible businesses do. But they also did the hobby community a big favour here. The fewer unreputable businesses, in any industry, that are trading the better in my opinion.

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  28. Apparently as well as suppliers and customers Maelstrom attempted to screw HMRC for 200k.

    Basically I would not order anything from any of the shell companies,or book event tickets from Eye Of The Storm.

    Because you can hide from the customers and suppliers you stiffed but the tax man is another matter.

    ReplyDelete

 
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