June 7, 2004
State Officials Close Interplay Offices
Despite assurances given over the weekend by Interplay CEO Herve
Caen, that the company's fortunes were not as bleak as many Internet
reports were suggesting, California's Department of Industrial
Relations, Division of Division of Labor Standards Enforcement today
forced the company to suspend operations.
The closure followed a snap inspection of Interplay's offices by
investigators, who found the company was without workers'
compensation insurance and had not paid employees. They fined the
company $1,000 for each employee, for a total of $79,000. This is in
addition to the $179,000 already owed in back taxes, the $432,000
owed in unpaid rent and the $156,000 lawsuit pending from BioWare
Corp., for unpaid Baldur's Gate royalties.
Despite these seemingly insurmountable problems, especially in light
of cash reserves of only $1.2 million, Caen has been upbeat about
resolving the situation – suggesting that employees could be back at
work this week.