Danish esports organisation Copenhagen Flames announced it has filed for bankruptcy.
In a statement published on May 1st, the organisation cited an inability to secure funds to ensure its survival.
Despite making efforts to secure funding throughout the last six months, Copenhagen Flames also mentioned missing out on the past two CS:GO Majors as a reason why it failed to secure funds. The organisation previously competed in Majors throughout 2021 and 2022.
Founded in 2016, Copenhagen Flames competed across a number of titles including Fortnite, FIFA, and most notably, CS:GO where it secured a top-eight placement at the 2022 Antwerp Major. In a bid to reduce costs, the organisation cut its Fortnite roster in January 2023 but failed to keep the organisation running.
Copenhagen Flames filing for bankruptcy marks the second Danish organisation to close in recent weeks. In April, Tricked Esport announced its closure citing market conditions raising operational costs while the likes of TENSTAR and X7 Esports have also ceased operations in recent months.
The decision for Copenhagen Flames to file for bankruptcy may come as a surprise. In July 2022, the organisation reported profits in its 2021 financial results in addition to increased growth.
Steffen Thomsen, former CEO of Copenhagen Flames, spoke on the news: “Copenhagen Flames is no more. It has been an absolutely gut-wrenching, frustrating and deeply sad experience to let go of so many amazing people who have worked tirelessly for us, who are extremely passionate about the club and who would do anything to make things work.
“I am immensely proud of what we achieved during these past 7 years without ever compromising our values, our mission or our conscience. We never looked for shortcuts or the quick buck. We have treated everyone with respect, honesty and transparency.”