A Paris court opened safeguard proceedings for Don’t Nod on 19 October, the French studio behind the first Life is Strange, Vampyr, Jusant and Lost Records: Bloom & Rage said in its half-year results and financial update, published on 20 October 2026 through Actus News. The Paris Business Court (Tribunal des activités économiques de Paris) appointed SELARL DÉTROIT, represented by Charles-Henri Carboni, as administrator, with an initial observation period of six months.
A court shield, not a liquidation
Safeguard (procédure de sauvegarde) is a French court procedure for companies in difficulty that can still pay their debts. It is not a liquidation: management stays in place, and debts incurred before the court’s ruling are frozen while the company prepares a plan with its creditors. Don’t Nod says the goal is to keep the business running and to make it easier to find long-term financing. Shacknews also reported the filing from the company’s release.
Chief executive Oskar Guilbert describes the request as a proactive, protective step. According to the release, cost savings and a partnership with Netflix in Canada have not been enough, and the current cash position cannot cover the financing needs of all the company’s operations and projects.
€9.9 million in cash and a January 2027 warning
The first-half figures are unaudited:
- Revenue for January–June 2026 was about €6.1 million, down 14% from €7.0 million a year earlier. Game sales brought in about €3.5 million and development revenue about €2.6 million.
- Total operating revenue, which last year included capitalised production costs, fell 56%, because no production was capitalised this half.
- The net loss narrowed to €7.1 million from €20.8 million. The 2025 figure included large impairments.
- Cash fell to €9.9 million at 30 June 2026 from €15.5 million at the end of 2025. Cash burn was €5.6 million, against €9.5 million a year earlier.
- The average workforce was 194 full-time equivalents, down from 279.
The company says there is a material uncertainty about its ability to continue as a going concern beyond 31 January 2027: the next twelve months depend on securing outside financing.
Aphelion, P14 and the Netflix game
The release says sales of Aphelion were below expectations. Another project, referred to as P14, did not meet the criteria for capitalising its costs despite expressions of interest, which means it does not yet have the financing it needs. Lost Records: Bloom & Rage brought in revenue from its PlayStation Plus and Game Pass deals. The Montreal studio is developing a narrative game based on a major Netflix property, financed by Netflix; the release does not name the property.
Up to 85 jobs in France
The restructuring announced on 1 September 2026 refocuses Don’t Nod’s French operations on a single production line. It could affect up to 85 positions in France, and consultations with staff representatives have begun. The company says the Montreal studio is not affected.
Don’t Nod says its full half-year financial report will be published by 31 October 2026. During the observation period it has to find financing and agree a plan for its frozen debts, including for the unfunded P14. The release does not name any investor or partner in talks.