Genesis Global Limited files for bankruptcy!
Employees of Genesis Global Limited received an email on Friday 23.12.2022 most that the company had initiated bankruptcy proceedings in Malta. Because the company was "facing serious financial difficulties".
As a result, the company said in the email that it may not be able to make payments it owes its employees, including outstanding salaries for the month of December or other possible payments amounts due.
Workers have been told they will be laid off as of January 23. According to the company, this is in line with the German Collective Redundancy Ordinance (Occupational Health and Safety Ordinance).
That means the end for around 150 employees. Partners have been put off and not paid for a few months now. In principle, it was already possible to foresee what was to come.
Summary Malta News and Government Statement
Genesis Global Limited has permanently closed its operations in Malta as a result of the bankruptcy. Attorney and former MP Jason Azzopardi published the email, which was sent to staff on Friday, informing them they are being fired.
The company had already laid off several employees in recent weeks, prompting fears among the company's remaining employees that they would not receive their December salaries.
Genesis Global Limited was fined £3,8million by the UK Gambling Commission earlier this year after investigations revealed significant corporate social responsibility and money laundering failures at the company.
The company had already been suspended from operations in the UK in 2020. However, the suspension was lifted three months later after "significant improvements in compliance".
The commission continued its investigation, which ended with a fine of €3,8 million, a warning and an additional license condition.
The layoffs came weeks after the company's co-founder and CEO, Ariel Reem, announced on LinkedIn that he was leaving the company on December 6.
Quote:
"Full and absolute solidarity with all the staff whose employment has been terminated today (two days before Christmas) by a gaming company in Malta."
Alternative employment for redundant workers
Economy Minister Silvio Schembri has commissioned Gaming Malta to help find alternative employment for those affected by the redundancy.
In a government press release, the ministry said several workers have already found employment in the sector. The Ministry is in contact with the company's executives via Gaming Malta to obtain a list of the redundant workers so that those workers can be contacted.
The iGaming Council, formed earlier this month, has also been briefed on the situation. It will help all affected workers.
The press release notes that there are around 700 vacancies in the iGaming space.
