Don't Nod enters judicial protection to secure funding

French video game developer Don't Nod has entered judicial protection proceedings in Paris to restructure debt and seek sustainable financing. The move, granted by the Paris Commercial Court on October 19, includes an initial six-month observation period intended to freeze liabilities and allow the company to present a viability plan.

The studio reported significant financial challenges in its first half of 2026, including a 14% revenue decline to 6.1 million euros and a net loss of 7.1 million euros. Cash reserves dropped from 15.5 million euros at the end of 2025 to 9.9 million euros by the end of June 2026. Management cited a difficult industry environment and limited access to financing as primary drivers, noting that the sales of the title Aphelion fell below expectations.

To manage costs, the company previously announced plans to reduce its workforce by up to 85 employees in France. While the studio continues operations, management warned of material uncertainty regarding the company's ability to continue beyond January 31, 2027, without external funding. Current revenue streams include 2.6 million euros from a partnership with Netflix for a narrative project being developed by the studio's Montreal branch.