Peachy and the Painting Phase recently had Tom Hibberd on and revealed rumors of how close Games Workshop was to bankruptcy not too long ago.
GW generally doesn’t like to pull the curtain back and reveal much, but luckily, Peachy and Tom talked about some of the more insider details of the company.
2014-2016 was a time of considerable change for Games Workshop, and things were much worse than we knew. It seems like a certain paint played a big part in saving the company from the brink, and without it, GW might have gone under (which seems crazy now with how well they are doing.)
Insiders Reveal How Close Games Workshop Was to Bankruptcy
All the latest about how close Games Workshop came to Bankruptcy comes from the Painting Phase interview below.
The interview itself is quite captivating as both of the people involved played very big roles in the company.
Tom Hibberd worked for GW for nearly 20 years and had a hand in creating some of its most significant hobby products. While Chris Peach (Peachy) was a former GW manager and oversaw the painting studio, and eventually became part of the Warhammer TV team.
Things get interesting quite fast, as within the first few minutes, Tom mentioned the Games Workshop was about four weeks away from closing for good and that the company was £15 million (about $19 million) in debt and they might not be able to pay wages.
GW’s strategy at the time was not really working because they weren’t recruiting any new players and didn’t have any products truly focused on people getting into the game, especially for painting.
They would play an intro game with someone, and then that person would have to spend £80 to get a starter paint set (which was not a starter set), glue, clippers, and just a couple of models. Especially when you consider that many people getting into the game were a little younger, and their parents weren’t down to spend that much money.
New Warhammer Players Were The Answer
This is where contrast and starter sets came into play; the idea was to make a one-coat solution for new painters.
2015 was a crazy time for GW, as not only were miniature sales way down, CEO Tom Kirby stepped down after almost 24 years leading the company, and the Old World was replaced by the Age of Sigmar!
So, obviously, this was a massive time of change for the company, and even though they were working hard, things looked grim (as they also mentioned a new product has to make enough profit to cover costs, which seem relatively high.)
Tom also mentions how much contrast paint and all the new painting starter sets saved the company (even though Contrast came out a little later in 2019.) This is also when the Start Collecting Boxes also came into play, but it would be a few years before things really turned around.
It’s also interesting to hear that contrast paint took five years to create.
Things take a long time to develop, and even though they saw the problems, it took a few years until all this started coming to fruition.
This all came to a head with 8th Edition. 2017 was a huge year for Games Workshop as 8th Edition 40k came out (with massive rule changes and Dark Imperium), along with all the start collecting boxes, starter hobby sets, and more.
All of that was in development in 2015 (along with Contrast paints). Basically, GW realized the game was far too hard to get into and focused nearly everything on new players. As the older player base was just not buying enough to really keep the game going.
This has continued through the years, as with 10th Edition 40k, you can play full combat Patrol Games, new starters, and paint more contrast than ever before.
Warhammer still has a high barrier to entry compared to other hobbies, but they also mention that there are still some issues for players in the game. Which GW addressed in their no place for hate statement.
GW’s strategies appear to have worked, as the company has been flying high since.
It’s fascinating to hear how close Games Workshop was to bankruptcy back then and what they did to change and get new blood into the game.
Be sure to check out the video below for all the details!
All the Latest Warhammer Rules & Model Rumors
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About the Author: Travis Pasch
Travis Pasch
Job Title: Head Writer & Editor
Socials: @paschbass
About Travis Pasch: Travis has been a Warhammer 40k hobbyist since the 1990s, playing the game since Third Edition. Through extensive traveling, he’s seen a lot of the miniatures hobby from across the world, giving him a unique perspective on the latest gaming topics and trends.
Travis’s brother even owns a commission painting studio, where he’s picked up a lot of good advice and techniques for painting Warhammer and tabletop miniatures over the years, as well. Travis joined the Spikey Bits team in 2019 and has been the lead writer since 2020.
Currently, he’s working on converting all his 40k Adeptus Mechanicus models and becoming a true tech enjoyer, complete with both sad and happy robot noises!
