Gen Con Files For Chapter 11

Heartless Gamer writes to tell us that Gen Con LLC announced late last week that they have filed for Chapter 11. This move will not affect the still profitable Gen Con Indy event which will still happen August 14-17, 2008. "This action became necessary as a result of significant unforeseen expenses associated with attempts to expand its core business to encompass externally licensed events. [...] The protections afforded by Chapter 11 will allow Gen Con to further its efforts to address its liquidity needs, preserve value for its creditors and explore strategic alternatives for the business." Evan writes to add that this is the result of LucasFilm suing GenCon.

This is a result of Lucasfilm litigation

[Obiwan Kenobi]

Just FYI, this filing is a direct result of Lucasfilm suing Gen Con for a lot of deception regarding "Celebration IV" that occurred last year.

As taken from this story on TheForce.net [theforce.net], here is a summation of the charges:

1. Gen Con failed to uphold its legal obligations in terms of financial reporting, accounting and payments to Lucasfilm ($500,000 in damages)
2. Gen Con did not give auction proceeds to Make-A-Wish as they had agreed to do ($150,000 in damages)
3. Gen Con did not give Lucasfilm their share of the auction proceeds ($150,000 in damages)
4. Gen Con did this all unjustly ($150,000 in damages)"

Re:

[poetmatt]

FYI,

Its a "to be determined 500k" meaning they don't know that it's accurate. I don't know what Gencon did/didn't do, but bankruptcy stays any legal matters....therefore, until they get out of bankruptcy (or judge allows the case to move forward), Gencon gets a get out of jail free (temporarily).

Re:

[poetmatt]

Go look at groklaw for SCO's case. SCO did it intentionally, however, it's not a delay tactic. It's common bankruptcy law. Cases are put on hold unless there is a reason pleaded to the bankruptcy judge that the BK (bankruptcy) judge accepts to allow it to go forward...this in itself can be allowed at times to determine amounts owed.

However, note that all BK is allowed with the expectations to both a: get out of BK as fast as possible if possible, and b: if not possible, liquidate/pay off your creditors to t

Re:

[Afell001]

A friend of mine went through a nasty divorce a few years back, and his wife was able to hold up the divorce proceedings for nearly a year by filing for bankruptcy. This made it so that she was able to collect separate maintenance checks (half his paycheck, since she "conveniently" quit her job a couple months before she filed) as well as live in the house he was paying for and forcing him to move out. Since the house and mortgage was in both their names, it was also tied up in the bankruptcy, which left hi

Re:

[poetmatt]

I hear you there. People don't realize how bad nuclear families are....if you have kids but are domestic, you don't sign on things together either. People live in this 1950's "lets get married and have a SO + kids together"...get tied down, get screwed. I'm sure maybe a girl one day will motivated me to get married but I'd certainly prefer a domestic partnership that is not legally bound or something...at least you have LESS to worry about like that, although not "nothing to worry about".

I don't know how di

Re:

[Moonpie Madness]

lawyers who abide these tactics are called "rambo" lawyers, and there is always two or three firms in every town that works this way. In fact, the next thing to do if you get divorced but want a fair deal and know your SO is going to be a jackass about it is to hire all the rambo attorneys, tell them your private info, and then drop them so they are barred from taking the case against you (since they have confidential information). The attorneys actually make a decent amount of money from these 'retainers

This was a triumph

[Anonymous Coward]

I'm making a note here... HUGE SUCCESS!

Re:This is a result of Lucasfilm litigation

[Otter]

2. Gen Con did not give auction proceeds to Make-A-Wish as they had agreed to do ($150,000 in damages)

If true, which may well not be the case, that's got to have a pretty big load of bad karma attached to it...

Re:

[Macgrrl]

So, superficially this looks like a case of Hollywood accounting:

• GenCon ran an auction
• The agreement was that the proceeds would be split between Lucasfilm and the Make-a-Wish Foundation
• Lucasflim is disatisfied with the statement of earnings from the auction and believe the proceeds were greater than reported by GenCon
• Lucasfilm is suing saying - "come on, we all know you made more than that - cough it up"

My questions would be: What split was LucasFilm expecting? What costs could be legitimately deduct

Re:

[GaryPatterson]

Sure, sure, what else would Obi Wan Kenobi say? I call bias!

(kidding!)

Re:

[MsGeek]

Gen Con didn't just screw Make A Wish, they screwed the fans at Celebration IV. To give an example: they produced an insufficient amount of certain collectables that were supposed to be sold there, and then allowed DEALERS to buy what little they had produced. If you wanted an embroidered C-IV patch, they were made of unobtainium at the event itself. And now, I checked on eBay, and guess what? Look up item # 150215899090 and you will see the upshot of that policy.

I am looking forward to C-V. The Los Angeles

d20

[Webs 101]

I guess Gen Con failed the saving throw.

Re:

[Shadow Wrought]

I guess Gen Con failed the saving throw.

Yep. Turns out they needed an unmodified 21 on a d20.

Re:

[operagost]

That's why I still play 2nd ed: 20 always succeeds! Stupid kids, get off my lawn!

Re:

[Shadow Wrought]

That's why I still play 2nd ed: 20 always succeeds!

Of course. But against lawyers you need to roll a 20 on a d12;-)

Re:

[gEvil (beta)]

from the missed-their-saving-throw dept.

I guess Gen Con failed the saving throw.

Yeah, we got the joke the first time.

Re:

[BarneyRabble]

They also failed a Wisdom and Intelligence Check. Must have been a lich sucking their spirit dry...(oh, wait they did that when they left Milwaukee...)

Re:

[Alascom]

d20 throws a +5 Funny at the GenCon... wow..

Anyone else hope

[Moryath]

that this might, JUST might, get them to move GenCon back to Milwaukee where it belongs?

I mean, seriously - they bitched and moaned about "not enough hotel space" being the prime factor when by moving it just one weekend later they WOULDN'T HAVE TO COMPETE FOR HOTEL SPACE WITH FUCKING WISCONSIN STATE FAIR.

Then the very next year at GenCon Indy - "not enough space in the dealers' room, we're growing out of all the hotel space we can find in Indy..." bah.

Move it back to Milwaukee where it belongs. I miss taking my buddies to The Safehouse.

Re:

[the_fat_kid]

amen to that.
I've never even been to the Indy GenCon. I don't go to Indy.
Milwaukee is a hole, but I would go to another GenCon or two there.
I haven't used my safe house card in many moons.

Re:Anyone else hope

[Peter Mork]

As much as I love The Safehouse and its back door, you do realize that GenCon is called GenCon because it belongs in Lake Geneva, right? I fondly remember MECCA as much as the next guy, but to equate that location with GenCon denies the history of the event.

Re:

[isomeme]

Sometime around 1975, when I was about 13 years old, we were planning to visit my grandparents near Milwaukee one summer when I realized that the fabled GenCon would happen right in the middle of our visit. I managed to work out a ride to Lake Geneva for one day, a glorious day which still lives in my memory as THE GEEKIEST DAY EVAR. I won a copy of the SPI game StarForce in a raffle within moments of arriving, and it just got better from there.

So, yes: For some of us, Lake Geneva will always be the true

I really hope so.

[Viewsonic]

The Milwaukee GenCons were a thing of legend. It blew my mind when they were moving it. If I were a spiteful person, I might be happy about this news. But I'd rather they just come back home. Where they belong.

Re:

[elrous0]

When Milwaukee gets rid of the smell, they can have it back.

Re:

[genner]

Muahahaha.....Schadenfreude for everyone.

That what they get for leaving us.

Or at least give Saturday a price break

[HiggsBison]

In this economy (wake me up when I have a steady job) I can maybe go on Saturday, and I won't really have much advance notice. So a six hour drive each way, and they want half the full conference fee just for the privilege of going to the dealer area for one day...er, make that one afternoon. Fsck that!

Re:

[a42]

Gen Con belongs in Milwaukee? Bzzt.

I've been to 10 Gen Cons, 5 in Milwaukee and 5 in Indy. Indy wins in every respect. Better hotel access, better convention area, better restaurants. The businesses surrounding the convention center go way out of their way to make attendees feel welcome. (Yes, it's totally self serving, but the businesses in Milwaukee didn't bother.)

Oh yeah. And Indy doesn't roll up the streets at 5pm. It's nice to get be able to find something to eat and/or drink after a long day of gaming

Re:

[catmistake]

Milwaukee? You mean Greyhawk.

Re:

[kria]

Um, GenCon Indy is the thing that keeps the rest of GenCon's failures running. It's been hugely successful in Indy, and from what I understand the locals are much friendlier. I can't attest to friendlier, having never attended elsewhere, but I can definitely say they are friendly. Restaurants tuning tvs usually on sports channels to sci-fi channel and decorating with old hall banners, special pins over at Hard Rock, that kind of thing. I had heard that things were somewhat less amicable in the old locat

Re:

[elrous0]

If by "Less amicable" you mean "hostile shithole," then yes.

This is what you get for messing with Wisconsin!

[haaz]

Ya know, me an' my buddy were just a sayin', ya know, whatever happen ta GenCon? An' he was like, oh, geez, well I tink they went southa here, ya know, not Chicaaago, but Indiaaana. An I was like, wha? Wha the heck dey go to Indiana fur? Oh geez. Nothin' down der but ... well, cornfields, an de Indy five huntert. Shucks. I dunno why da heck dey'd leave Wisconsin!

And in other news, my bid for the Milwaukee County Board [wordpress.com] may wrap up today on primary day. We'll see. :D

Gen Con

[Teflon_Jeff]

This has been seen coming for a while. GenCon SoCal failed a few years ago, and the mega-convention scene is becoming larger. GenCon doesn't quite have the exclusive draws it used to have. Let's hope we see a refocus on becoming a destination for all gamers.

Re:

[VellonIssachar]

PAX would be the exception here.

Re:

[Sitnalta]

Well how do you know all convention organizers are thieves and liars? Do you know them? Just because some conventions are questionably run doesn't mean all of them are. Every aspect of PAX isn't personally run by Gabe & Tycho, but they still call the shots. So if there was anything shady going on they would, and have, excise it immediately.

Re:

[mckinnsb]

I was *just* going to say that. From what I've heard, all the reports from PAX have been 100% positive.

I'd really hope on their part that this was a case of someone screwing Gen Con over, which resulted in LucasFilm not receiving their agreed-upon dues, and not the reverse. I don't know the details as to who ran the convention, but I'm sure many of you have been given an estimate- lets say , to renovate your kitchen- and when the smoke cleared, suddenly your bill was twice as large as you thought it woul

Re:

[Anonymous Coward]

It's not that they're (necessarily) run by those with criminal intent. Many conventions started out small and became much larger than their operators ever intended, and these are people with little business or financial know-how. It's a common sight to see conventions collapse due to unintentionally poor management in any field, really.

Re:Why am I not surprised?

[byennie]

Really? Do you know the people who run GenCon?

GenCon is owned by Peter Adkison, the creator of Magic and former CEO of Wizards of the Coast. He's a gamer through and through and one of the most approachable guys on the planet of his stature. Peter made plenty off of WoTC's sale to Hasbro to do whatever he wanted - GenCon wasn't lining his pockets by any stretch of the imagination. This is the same man who responded to my unsolicited emails for help starting a gaming company. He answered any question I had, connected me with his personal contacts, and in return - just suggested that I pay it forward. I don't know anything about GenCon's legal issues, but I suspect neither do you.

I don't know the depth of their dealings. But unless you do, perhaps you should refrain from making generalizations. God forbid you ever achieve such a level of success and find people throwing stones at you. Reserving judgement isn't nearly as sensational, but it's often warranted.

Re:Why am I not surprised?

[Irish_Samurai]

I thought Richard Garfield [wikipedia.org] created magic.

Re:

[gizmoiscariot]

If you took the time to read the Wikipedia article, you would see that Peter was the head of Wizards of the Coast. Your correct in so much as Richard designed Magic. However, this comes down to who do you give credit to the success of Magic; the person who designed it, or one of the people who were responsible for giving it to the public.

Re:

[Lehk228]

only a cocksucker with a marketing position would chose the latter.

Re:

[byennie]

Peter did a whole lot more than just market Magic. If Garfield had something shrink wrapped and ready to go, he wouldn't have come to Wizards of the Coast in the first place.

That's why it's called a *partnership*. Flame all you want, but both sides need each other, and it's juvenile to suppose that anyone who can bring a product to fruition is some sort of soul-less marketing droid. What a miserable, woe is me attitude that is.

Re:

[Stu Charlton]

However, this comes down to who do you give credit to the success of Magic; the person who designed it, or one of the people who were responsible for giving it to the public.

Ahem [apple.com].

Re:

[byennie]

"creator" -- a poor choice of words on my part. It would be more accurate indeed to say that Peter brought Magic to market, and that Richard Garfield was the original inventor.

In any case, I think my points about Peter in general stand.

Re:

[mlund]

Richard Garfield was the original Game Designer.

Wizards of the Coast, then run by Peter Adkinson, published the commercial game product.

Re:

[Psychochild]

To be fair, you can only count Peter Adkison as one of the people who helped launch Magic: The Gathering. It was a large project, and the designer is Richard Garfield as another post indicated.

However, the rest of your post is spot-on. I had the pleasure of meeting Peter a few times, and he's a really approachable guy and a true gamer. I've had nothing but positive interactions with him.

I truly hope that the accusations mentioned in the Lucas lawsuit are without merit. However, if there is truth that th

Re:

[vertinox]

I don't know of the situation either, but in most organizations the owner and those who actually do the running or often different due to delegation and management issues. It could be quite possible he wasn't involved in what transpired and even then one has to really wonder about the whole issue with the donation issue with the charity organization.

That said, it is unknown if his hired hands were thieves with or without his knowledge, but even if there was no malice there appears to be incompetence at some

Re:

[Creepy]

I don't know Adkinson, so I can't comment on him personally. WotC was paid 325 million to sell to Hasbro - if I were a majority shareholder, I'd have a tough time turning that down.

You apparently missed how RPGs fell almost instantaneously about 2 years after Magic came out. My college gaming group with almost 100 members and 20 years of existence disbanded because all anyone ever wanted to do was play Magic and they could do that with pickup groups anytime. There's a reason its known as 'crack for gamer

Re:

[91degrees]

There are plenty of small non-profit conventions that aren't.

Re:Why am I not surprised?

[Fozzyuw]

ALL "conventions", no matter what industry/hobby they are about, are run by thieves[...]Seriously.

That's because it takes too long to level a Paladin.

If it's true

[rossz]

If what LucasFilm says of GenCon, then they need to be crushed. Stealing money from dying children? It would be very difficult to do something more scummy.

Re:

[drinkypoo]

I'm sure that perception is what LucasFilm is counting on. But is it true? Does anyone know anything about this?

Cue Martin Short nervously puffing on a cigarette.

[filthpickle]

while representine GenCon

"maybe the kids wanted to be robbed....maybe that was their wish..."

no idea why that image popped into my mind.

Re:

[Libertarian001]

Interesting take and some blatant BS.

BS first...Reneging on a (n alleged) promise to donate to charity is not stealing. Putting your hand in the cookie jar and taking a wad of cash out without permission would be.

And the interesting part...So GenCon is expected donate their proceeds to charity while Lucas gets to keep his...

Re:

[Anonymous Coward]

Interesting take and some blatant BS.

BS first...Reneging on a (n alleged) promise to donate to charity is not stealing. Putting your hand in the cookie jar and taking a wad of cash out without permission would be.

And the interesting part...So GenCon is expected donate their proceeds to charity while Lucas gets to keep his...

Yeah, reneging on a promise to donate earnings to charity is not technially stealing...but it is every bit as immoral. And just as illegal.

No they didn't put their hand in the cookie ja

Re:

[LordNimon]

Yeah, reneging on a promise to donate earnings to charity is not technially stealing...but it is every bit as immoral. And just as illegal.

No, it is not as immoral, and it is not as illegal. Stealing from someone is worse, legally and morally, than breaking a promise to give.

Also keep in mind that you don't know all the details. I'm sure LucasArts is trying to make GenCon look worse than they really are, so that they can win the lawsuit. The claims may not be outright fabrications, but they could e

Oblig:

[San-LC]

Gen Con LLC: You will not find a more wretched hive of scum and villainy.

Re:

[Anonymous Coward]

regardless of the ends, Bigby's Crushing Litigation is a fearsome and evil magic.

I guess ill add lucasfilms

[nurb432]

To my boycott list.

Re:

[Fulminata]

Why? GenCon has had ten months to uphold their part of a deal which included donating proceeds to charity. If they haven't done so by now, then I'd say that legal action was the appropriate course for Lucasfilm to take.

Just because I might like going to GenCon doesn't change that.

Re:

[nurb432]

Why? Well, for starters i don't believe in IP rights.

Re:

[Anonymous Coward]

Why? Well, for starters i don't believe in IP rights.

Er... what?

Lucasfilms shouldn't sue GenCon LLC for allegedly not turning over money specifically raised for certain causes at auction because you don't believe in IP rights?

Hell, $150k of it was supposedly auction money for MakeAWish.

"I'm sorry, little boy with terminal cancer. You don't get your wish because I don't believe in IP rights!" That's cold, dude. Also completely nonsensical. Someone got the auction money. If it was raised in a charity's n

Re:

[IgnoramusMaximus]

I am not exactly known around here as a great believer in imaginary property either, but this has nothing whatsover to do with IP.

GenCon was given by LucasFilm some physical memorabilia, presumably various props from movie sets and the like, as a donation for Make-A-Wish, which GenCon was supposed to auction thus turning them into cash which then was supposed to be donated to the said charity. Instead, they auctioned the donated stuff and kept the money.

Re:

[Isca]

ummm... for what? For tuning over their property to Gen Con to be auctioned off (with a big chunk going to charity)

This part of the lawsuit is pretty cut and dried. LucasFilms gives Gen Con LLC property, property is auctioned for $$, $$'s are not distributed as agreed before auction.

Gen Con LLC

[iminplaya]

Who?

What is Gen Con? Celebration IV?

[Anonymous Coward]

I'm sure this story would be much more interesting with some context. Even TFA has none. Excellent obfuscation.

Perhaps some simple explanation of terms in the submitted story would be good.

I'm surprised the first comment isn't 'WTF is Gen Con?'

Who? What?

[carou]

Who are Gen Con? What is Gen Con indie? Why is Lucas suing them?

  Is it too much to ask for you to put a summary of the story in the summary?

Re:

[elrous0]

Gen Con stands for "Generational Convention" (the principle that anyone over the age of 60 who wobbles around like an arthritic shouldn't do action films), "Indy" is the person who ignored this rule. And they're suing him because they just got a look at him stumbling around in the dailies and realized that no amount of stunt-double footage could make this NOT look silly.

Re:

[spun]

Silly troll. Gen Con is one of the oldest, biggest, and most prestigious gaming conventions in the world. You know, Dungeon's and Dragons? Video games? Oh, why do I even bother, you're just being insulting to get a rise out of people. Even if it was a furry/anime/cosplay thing, why do you care? No one is rubbing your face in it, making you watch. Do you hate America? You know, land of the free? Do you hate that people are free to do what they want? Would you like to tell everyone what they can and can't do?

Re:

[Anonymous Coward]

Gen Con is one of the oldest, biggest, and most prestigious gaming conventions in the world.

I'm not the OP either, but can't help thinking this is a use of "prestigious" that I've never seen before.

Re:

[youthoftoday]

Dungeon's what?

Re:What the hell is a Gen Con

[spun]

Oh man, my finger slipped. You know, the apostrophe, it's so close to the... ah... Look over there! It's Bigfoot!

Re:

[91degrees]

Dungeons and dragons? Wasn't that the game that pirated the idea from the movie "Monsters and Mazes"?

Re:

[obeythefist]

And nobody is better than gamers at being petty and political when in large groups. I've been involved in the local science fiction convention crowd and I've never known a more incestuous, aloof, and petty bunch of people. Most visitors to the cons missed the point of about half of the events at the cons because they were all what amounts to pretty large circlejerks for the organisers. And yeah, some of them were furries. I'm not sure people like that should be trusted to run large events.

I'm going to

I thought you Australians had a sense of humor

[spun]

Heh. You know, I've never been to one of those things? I love sci fi, fantasy, and gaming, but I wouldn't go to a convention. I can't stand fanatics of any stripe, and I don't like (all male) circle jerks.

You do get that I was making fun at tjstork's expense, right? Slashdot is not only for people who love America. I wasn't saying that at all. I respect other's opinions, IF that opinion is worthy of respect. I respect people's right to have and share an opinion, too, but if my opinion of their opinion is th

Re:

[obeythefist]

I hear you! Unfortunately we learn very quickly that when an American is saying "Don't you love America?" it's usually a herald for much more frightening behaviors, so we do tend to take it very seriously!

I think perhaps the best way to celebrate games like Dungeons and Dragons is to get some friends together and go play it.

Re:

[Blackhalo]

It is not all guys, there are a lot of fat chicks too!

Re:

[An ominous Cow art]

One of the times I went to GenCon (1984 I think?), I met a very bright, interesting, attractive, non-fat girl. Until the day I die I'll regret losing touch with her. Sigh...

And apparently as punishment, the last time I went (1998?), somehow, of all the game tables in GenCon, I wound up at one with an ex-girlfriend and her boyfriend. Yeah, that was a good time... :-(

Now I'm all depressed.

Re:

[MBGMorden]

Don't know about GenCon, but at DragonCon there are a lot of non-fat very attractive chicks around too. I think a lot of them are just playing dress-up though rather than being true hot geek-girls (though a few are). A lot of girls love the thought of an early Halloween party which is essentially what DragonCon is for some people.

Indeed the selection of not-hot fat chicks is pretty significant too, but you take the good with the bad.

Fun event overall though, and the only one I still attend regularly (been

Re:

[glwtta]

Heh, I admire the indignation, but you do realize that to the rest of society the Dungeons & Dragons and furry/anime/cosplay crowds are nigh indistinguishable?

(yes, I'm one of the people who would've appreciated a line in the summary about what the hell GenCon is)

Re:

[NJVil]

Flop could be an understatement. Nobody I know is interested in 4th Edition despite all the Gleemax and related hype. The canceling of Dungeon magazine and Dragon magazines to pursue this online bastard child of Dungeons & Dragons and World of Warcraft has left a fair number of people with a bad taste in their mouths.

Re:

[mlund]

Peter Adkison owns GenCon.

Hasbro owns Dungeons & Dragons.

Hasbro bought Peter Adkison out of Wizards of the Coast (who owned D&D) over half a decade ago.

Re:

[taustin]

D&D and GenCon are owned by entirely different companies, and have no business connection whatsoever any more.

Which means we get to watch two companies crash and burn instead of just one.

Re:

[arizwebfoot]

If you want to Mod me a Troll, at least make it a flaming troll. You know with red hair, beady eyes, buck teeth, and nekked.

I thought it humorous.

Re:

[alva_edison]

It's a quote from Benjamin Franklin (or very similar to one anyway)