Mind Candy, the developer behind the children’s online game Moshi Monsters, is seeking a delay to loan repayments over fears its future is threatened by mounting losses, reports The Telegraph.
The company said it was in negotiations with its lender, the technology start-up specialist TriplePoint, to push back the first repayment on a loan it took out in 2014.
The bill is due in July and Mind Candy said that if it is forced to begin paying the £6.5m at an interest rate of 12pc there may be “significant doubt over the company’s ability to continue as a going concern” if sales do not improve.
In documents filed at Companies House it added: “The company has a good relationship with the lender.
“In the event that the negotiations are not successful or that the company cannot generate sufficient revenues then the company would be unable to continue within the current finances available to them and, therefore, require [a] further cash injection to continue operational existence.”
Mind Candy’s financing problems were revealed as the plunge in popularity of Moshi Monsters was laid bare in accounts covering the calendar year 2014.
Revenues, mostly drawn from subscriptions to the online game and licensed toys, fell by more than half to £13.2m. Losses ballooned from £2.2m in 2013 to more than £14m in 2014.
At the peak of the Moshi Monsters craze in 2012, Mind Candy’s turnover topped £46m and it delivered an £8m profit.