Aussie distributor of SFIV, Res Evil 5 in receivership?

Source: Earlier today Kotaku Australia ran a story claiming that Red Ant Pty Ltd, a games software and DVD distribution company that distributes Capcom, Konami, and Midway in Australia, has gone into receivership. What we heard: Rumours of Red Ant's faltering business reached a crescendo today...

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Source: Earlier today Kotaku Australia ran a story claiming that Red Ant Pty Ltd, a games software and DVD distribution company that distributes Capcom, Konami, and Midway in Australia, has gone into receivership.

What we heard: Rumours of Red Ant's faltering business reached a crescendo today when Kotaku Australia posted a story saying that several sources (not specifically from Red Ant) were claiming that the local distributor of games such as Street Fighter IV, Resident Evil 5, and Bionic Commando had gone into receivership.

What does this mean for the company? Well, receivership is generally the final step before declaring bankruptcy in Australia. Simply put, it happens when a company informs the Australian Securities & Investments Commission that it has been unable to pay its bills for quite a while, resulting in the company being in a high debt situation. From there, the company is placed into receivership by an external organisation that freezes the company's assets and assesses the viability of the operation continuing.

Sadly, most companies that enter receivership are deemed not savable, and as a result, liquidators are brought in to sell off its assets in an attempt to recover as much money as possible.

The timing couldn't be any worse for gamers, given that Red Ant is due to ship Resident Evil 5, Street Fighter IV, and Bionic Commando in the next two months. It should also be noted that Red Ant holds Australian distribution agreements with Konami, Midway, and about half a dozen other smaller publishers.


The official story: Although we haven't been able to get a hold of anyone at Red Ant, a quick search on the ASIC Web site indicates the worst. According to the company's listing on the ASIC site, Red Ant's status is "UNDER EXTERNAL ADMINISTRATION and/or CONTROLLER APPOINTED." The page also states that the receivers are due to hand in their report on whether Red Ant will continue to operate on the 15th of May this year.

Bogus or not bogus?: There's no official word from Red Ant, but we're going to go ahead and trust the government on this one, declaring it not bogus. As to how this affects the upcoming release of games such as Street Fighter IV and Resident Evil 5, we'll keep you updated as soon as we know more.

Discussion

67 comments
Templar_Bladema
Templar_Bladema

It is moments like this that make me say, "THANK GOD I AM NOT LIVING IN AUSTRALIA!!!"

ecs33
ecs33

And wait, RE5 isn't banned in Australia??? Really!?

ecs33
ecs33

Ofcourse this affects more than just Australia, because the firms higher in the value chain will miss the sales from Red Ant. But it probably won't be back breaking.

ecs33
ecs33

Good thing this is only happening to one final part of a supply chain. It's when problems happen in the middle of the chain that the world gets affected. Sucks for Australia but this isn't terrible news for the World in general.

hypnotoad8128
hypnotoad8128

Nothing is recession proof, this story proves it. So does the Aust Securities & Investment Commission government website. A receiver was appointed on the 16th Jan. see: http://www.search.asic.gov.au/cgi-bin/gns030c?acn=096_799_692&juris=9&hdtext=ACN&srchsrc=1 Red Ant are on the ropes. As for how they could go bust, margins on games in Australia aren't as huge as most people think. Sure we pay a lot more than overseas, but the local distributors pay a higher wholesale amount as well. Got to remember that all imported goods are generally brought in US dollars, so factoring in the weaker AU dollars prices are always going to be higher for them to purchase wholesale which puts the end purchaser price higher also.

msudude211
msudude211

Kotaku posted a story? That sums up the reliability of this one.

xophaser
xophaser

Games are selling, hardware system are selling, but gaming companies are goimng under and cutting back. Is this because of piracy or bad buisness practice?

Noob_Krusher
Noob_Krusher

Dude, guys. The video game industry is "recession-proof." Everyone relax.

barb_girl
barb_girl

:( o noes!!... :'( ....sorry Australia *cries 4 u*

Deluhathol
Deluhathol

GRARARAAAARARAAAAAAAA!!!!!!!!!!@@#!@!!!!!!!!!!!! "I find that pretty unfair, that the whole world might receive this and good ol' Australia won't." Don't worry, NZ will be in the same position it seems, through no fault of our own. Awesome. If I can't get a hold of RE5 on release day, something VERY unpleasant is going to happen...

Port5
Port5

ha ha, trust the government. good one.

AyuSora
AyuSora

BastrozX, its not that unfair. Things like this happen, and many countries, especially Japan, get exclusives and that just how things work. If they want the game, they can probably just import it or something

GM-Lucra
GM-Lucra

As long as the games actually come out who cares how long it takes because I would rather get them eventually then not get them at all which would suck.

BatrozX
BatrozX

I find that pretty unfair, that the whole world might receive this and good ol' Australia won't.

vertigopm
vertigopm

if RE5 is pushed back i will donate 1million dollars to save capcom

pharcyde1521
pharcyde1521

We could our stomp our feet and hope our Island Continent moves towards reasonable shores, wait like chumps or buy online and screw our economy.. Either way we're gettin these games!! Street Fighter IV and Resident Evil FTW!!

LysanderNaFaile
LysanderNaFaile

@Tebbit Yeah Red Ant distribute in NZ as well as here.

LysanderNaFaile
LysanderNaFaile

[This message was deleted at the request of the original poster]

Hunter_Mors
Hunter_Mors

WTF!? just cus im aussie i got wait longer for rresi 5!? ffs

spacemariens22
spacemariens22

i dont care how street fighter and resi get here as long as they get here on time!! why do us ozzies always get the raw end of the deal when it comes to video games in australia!?

Gobbomob
Gobbomob

"As to how this affects the upcoming release of games such as Street Fighter IV and Resident Evil 5, we'll keep you updated as soon as we know more." Oh...... damn..... Please do update us, me & my friends already preordered the Street Fighter IV game.

cannibal87
cannibal87

this is crap been waiting for so long for them 2 games

RAVEZero
RAVEZero

Damn...a government that hates games, the near fact that AUS may not get SFIV for a while... Australia Gamers, keep ya heads up. It's always a pain to see some gamers get what others rightfully deserve, but can't get because of situations beyond their control. KEEP PLAYING, AUSTRALIA!!

Tebbit
Tebbit

Oh lords.. does anyone know if Red Ant distributes in NZ as well? I know they release some $9.95 games around here (Deus Ex anyone?), but I dunno if they do major releases

Pete5506
Pete5506

Dang to bad for australia

superchink
superchink

of course it does. Red Ant is aussie distributor. that means any RE5, Bionic Commando, SF4, and many other games, left hanging without a distributor in Australia/NZ region.

KrzyJoe
KrzyJoe

Wait, does that affect only Australia or wat?

MuscleCarMan
MuscleCarMan

Aussies are always getting the dirty end of the stick with gaming. Hang tough guys, they'll have it there someway.

daniel_sequoyah
daniel_sequoyah

as bad as I feel for you guys.....I almost hate to ask if this will impact US gamers any.I have the CE versions of both SF4 & RE5,as well as a TE stick pre-ordered from Gamestop.

RonTorque
RonTorque

People are waiting for these games form a long time and just before the release this happens. Odd chances indeed.

Weddum
Weddum

The worst this will mean for us is a couple months delay while Capcom make an agreement with another distributor if Red Ant goes under. Same deal with any other developer who has a contract with them.

pakhair
pakhair

So Sorry for Aussies but I am quite 99.99% sure that the games will come out from any other distributor because gaming companies can't waste their money!!!!!!!!! SO DONT BE SAD AUSSIES

QVT
QVT

distribution

JEEBUS_BOGONDO
JEEBUS_BOGONDO

Does Red Ant hold a monopoly over Software and DVD distribution in Australia? Can they not use another company?

macrules_640
macrules_640

That's a real shame this is happening, hopefully they can work something out.

CharlieFubar
CharlieFubar

um... who cares??? its not like there isnt another dvd distribution company in australia.

REGamer87
REGamer87

Wow, hope something can be sorted out, if not theres always smuggling from other countries!!!

angelGP32
angelGP32

I don't claim to know their entire business model, but with big name companies like that, especially Capcom, you still are losing out?? Sounds like maybe they would need to restructure before they flat out go bankrupt, I wonder if they have something similar to chapter 11 restructure. As for the games go, I wouldn't worry, Capcom will find a way to get them there.

majere613
majere613

Ouch. Living in the UK, which has felt like a bit of a ghetto recently as far as Capcom are concerned, it's easy to forget that Australian gamers have had a rough time of it for a while now. As I understand it, game prices in Australia are seriously inflated- I don't know how much of an impact this combined with the weak global economy has had on Red Ant, but I doubt it has helped. A small ray of light for those waiting for SFIV- with the receivers report due on the 15th of May, well after SFIV's release date, it's likely that existing preorders for the game will be filled, because the receivers will want to try to keep the books balanced and unless something is apocalyptically wrong behind the scenes, the company should make money from doing so. If they've actually managed to make a loss on sales of software though, I'd be amazed- though it would certainly explain how they've gone bust.

tiprun
tiprun

This is a real shame, I hope something can be worked out to sort this and if not, at least Aussies can import from the UK.

snyguy
snyguy

mystic_knight seys I'll have to import those 2 titles ... im more concerned about getting my hands on SF IV considering this was one of my most anticipated titles for this gen, same but if i cant do nothing about getting them ill wait with kill zone 2

maaly81
maaly81

so then austrailia wont be getting those games???? and the company wont exist no more??? sucks for aussies

FarmFreshDX
FarmFreshDX

When you run a company into the ground that's what happens. Bad economy or not. I'm not saying Red Ant did anything catastrophic, since I don't know their whole story, but if you don't make wise decisions, you lose money and eventually go bankrupt.

mystic_knight
mystic_knight moderator

I'll have to import those 2 titles ... im more concerned about getting my hands on SF IV considering this was one of my most anticipated titles for this gen,