India's Nodwin Gaming has pulled the plug on Berlin-based Freaks 4U, halting further investment and writing off its previous investment. It intends to accompany and support the insolvency proceedings in the search for new investors.
Since mid-2024, Berlin-based Freaks 4U has been part of the Indian gaming and esports group Nodwin Entertainment. Nodwin had previously acquired a stake in several stages and supported Freaks 4U, which had run into financial difficulties. But that is now over.
In a press release, Nodwin Entertainment announced that it was realigning its strategy and would not be making any further investments in Freaks 4U. The decision was preceded by financial and legal consultations. In addition, financial assistance had been provided repeatedly without a turnaround.
"Nodwin has supported Freaks 4U’s business for multiple years within the Nodwin framework of limited recourse investment strategy, yet despite additional investments the situation did not improve and it would be irresponsible to put further funds from Nodwin’s investors at risk. Based on this, Freaks 4U has filed for insolvency in Germany", the press release says.
The insolvency application and the opening of insolvency proceedings by the Charlottenburg Local Court in Berlin were confirmed by the corresponding mandatory publication. Attorney Dr. jur Susanne Berner, Berlin, was appointed as provisional insolvency administrator.
It is unclear what will happen next at Freaks 4U. According to Nodwin, the company intends to monitor the proceedings and support the insolvency administrator in the search for a suitable investor. This means that Freaks 4U will at least be able to continue its business activities.
Nodwin itself has completely written off its previous investment in the German company. There will be no impact on the global activities or financial outlook of Nodwin or its other subsidiaries.
