Mind Candy seeks loan repayment extension

Mind Candy, the team behind the children’s online game Moshi Monsters, is seeking a delay to loan repayments following a financial slump.

The company is currently in negotiations with its lender TriplePoint to push back the first repayment on a loan it took out in 2014.

The company has voiced its fears that its future continues to be threatened by mounting losses and has said that if it is forced to begin paying the £6.5m loan with an interest rate of 12 per cent this July, there may be “significant doubt over the company’s ability to continue” if sales do not improve.

The loan was originally set to be repaid by June 2017.

However, Mind Candy has also stated that it has a “good relationship with the lender.”

The Telegraph reports that in documents filed at Companies House, Mind Candy added: “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.”

In 2013, the creators of Moshi Monsters reported revenues of £30.6 million. Last year that figure more than halved to £13.24 million.

According to The Guardian, chief among the drop-off was Mind Candy’s licensing arm, with merchandise sales dropping from £12.8 million two years ago to under £3 million in 2014.

However, its mobile division saw growth from zero to £2.1 million in 2014.

"As our financials show 2014 was a year of very heavy investment for Mind Candy with multiple teams developing a wide range of products and apps across all three of our brands: PopJam, World of Warriors and Moshi Monsters,” they said.

Exit mobile version