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. A month after saying it might not have enough cash to get through January 2027 and that up to 90 people were at risk of being laid off, the studio has begun "safeguard proceedings" aimed at buying it time while it tries to get its financial situation sorted.

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.

"The videogame industry continues to face an exceptionally challenging environment, marked in particular by highly selective access to financing," Don't Nod CEO and Chairman Oskar Guilbert said in a financial update. "In this context, our current cash position does not allow us to adequately secure all the financing requirements associated with our operations and projects."

Thus the opening of the safeguard proceedings, which Guilbert said "is a proactive, protection measure ... 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."

" 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.

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