Fragbite Group files bankruptcy for Fall Damage months after purchasing it

Swedish corporate group Fragbite Group has declared bankruptcy for Alara Prime developer Fall Damage.

While a publishing for the game is still being determined, the process has created "an unsustainable financial situation" for its creator. The apparently "not temporary" bankruptcy was further determined by an inability to pay off debts by their due date.

Impact-wise, the bankruptcy is said to be valued at SEK 39.0 million (or $3.63 million) for Fragbite. Both it and subsidiaries under its umbrella are said to "continue operations without interruption."

Fall Damage was formed in 2017 by DICE alums Markus Nyström, Dan Vaderlind, Mikael Kalms, Anders Gyllenberg. Fragbite acquired the studio last year as it was working toward completing its free-to-play shooter.

The search for a publishing partner has been ongoing since fall 2023 in what Fragbite said were "multiple dialogues." Despite the bankruptcy, development on Alara Prime is "on schedule."

As far as all of Fragbite is concerned, the company affirmed it has a "fundamentally stable, profitable core business" for the 2024-2025 fiscal year.