# Don't Nod financial restructuring and insolvency risk > Live situation record from CLSTR: https://clstr.news/situations/dont-nod-financial-restructuring-and-insolvency-risk > Updated: 2026-10-27T12:21:37.000Z. Sources: 7. Developments: 2. French video game developer Don't Nod has entered judicial protection proceedings in Paris to restructure debt and seek sustainable financing. Following a 14% revenue decline and a net loss of 7.1 million euros in the first half of 2026, the Paris Commercial Court granted a six-month observation period to freeze liabilities. Management noted that sales for the title ‘Aphelion’ fell below expectations and warned of material uncertainty regarding the company’s ability to continue operations beyond January 31, 2027, without external funding. The situation has escalated with warnings of potential insolvency and mass layoffs. The French video game workers' union, STJV, reported that management has presented scenarios including company liquidation within 2026. These proposed redundancies could target nearly all non-managerial roles, such as programmers, animators, and sound designers. The union has also alleged illegal practices regarding how staff selection is being handled. A government ruling is expected in early November, which will determine the timeline for a finalized viability plan and potential termination notices. ## Timeline ### 2026-10-27: Don't Nod faces potential insolvency and mass layoffs French game developer Don't Nod is undergoing a safeguard procedure amid warnings of insolvency, mass layoffs, and potential liquidation by 2026. 2 sources. https://clstr.news/cluster/dont-nod-faces-potential-insolvency-and-mass-layoffs ### 2026-10-20: Don't Nod enters judicial protection to secure funding French developer Don't Nod has entered judicial protection in Paris to restructure debt following a revenue decline and net losses, seeking to secure funding to sustain operations beyond early 2027. 4 sources. https://clstr.news/cluster/dont-nod-seeks-creditor-protection-amid-financial-crisis --- Cite as: Don't Nod financial restructuring and insolvency risk. CLSTR, https://clstr.news/situations/dont-nod-financial-restructuring-and-insolvency-risk