Debtor

The studio behind Life is Strange, Jusant, and Lost Records: Bloom & Rage is desperately struggling to stay afloat

The studio behind Life is Strange, Jusant, and Lost Records: Bloom & Rage is desperately struggling to stay afloat Don't Nod has begun "safeguard proceedings" to protect itself from creditors and says up to 85 employees are at risk of being let go under its new restructuring plan. Things seem to have gone from bad to worse for Don't Nod, the developer of the first two Life is Strange games as well as Jusant, Banishers: Ghosts of New Eden, Lost Records, and Aphelion. Don't Nod has been struggling since 2024, after both Jusant and Banishers: Ghosts of New Eden, despite being well-received by players and critics, sold "well below expectations." Work on two new games was put on hold and layoffs followed in 2025, but despite achieving "significant milestones" in its restructuring plan, the studio is still in trouble. intended to provide the necessary framework and time to build a sustainable solution, while continuing our operations and preserving the value of our assets, our projects and our expertise." Safeguard proceedings in France, where Don't Nod is based, are a bit like Chapter 11 bankruptcy in the US: Switzerland-based corporate finance advisory firm Hectelion describes it as "a preventive French insolvency procedure available to companies that are not yet in payment default but face difficulties they cannot overcome alone." The process is initiated by the debtor—in this case, Don't Nod—and "provides an observation period of 6–18 months during which creditor enforcement is suspended." During that period, a plan to reduce and reschedule the debt, over a period of up to 10 years, is worked out with creditors and ultimately approved by a court.