Painting Phase guest Tom Hibberd revealed rumors of how close Games Workshop was to bankruptcy and what “saved” them.
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. At the same time, Chris Peach (Peachy) was a former GW manager who 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 was also when the Start Collecting Boxes (now called Combat Patrols) 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 Warhammer 40k. 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.
In conclusion, the revelations from Tom Hibberd and Chris Peach highlight a pivotal moment in Games Workshop’s history when the company faced significant challenges that could have led to its downfall. The introduction of accessible painting solutions and starter sets played a crucial role in attracting new players and revitalizing the brand.
This strategic pivot not only saved Games Workshop from potential bankruptcy but also set the stage for the flourishing community and robust growth it enjoys today. It’s remarkable to reflect on how close the company was to closure just a few years ago, and it underscores the importance of innovation and adaptability in ensuring long-term success in a competitive market. With their latest focus on inclusivity and accessibility, Games Workshop seems to be poised to thrive well into the future.
All the Latest Warhammer Rules & Model Rumors
What do you think about Games Workshop supposedly being about four weeks away from closing?
About the Author: Rob Baer
Rob Baer
Job Title: Managing Editor
Founded Spikey Bits in 2009
Socials: Rob Baer on Facebook and @catdaddymbg on X
About Rob Baer: Founder, Publisher, & Managing Editor of Spikey Bits, the leading tabletop gaming news website focused on the hobby side of wargaming and miniatures.
Rob also co-founded and currently hosts the Long War Podcast, which has over 350 episodes and focuses on tabletop miniatures gaming, specializing in Warhammer 40k. and spent six years writing for Bell of Lost Souls.
Every year, along with his co-hosts, he helps host the Long War 40k Doubles Tournament at Adepticon and the Long War 40k Doubles at Las Vegas Open, which attracts over 350 players from around the world.
Rob has won many Warhammer 40k Tournaments over the years, including multiple first-place finishes in Warhammer 40k Grand Tournaments over the years and even winning 1st place at the Adepticon 40k Team Tournament.
With over 30 years of experience in retail and distribution, Rob knows all the products and exactly which ones are the best. As a member of GAMA (Game Manufacturers Association), he advocates for gaming stores and manufacturers in these difficult times, always looking for the next big thing to feature for the miniatures hobby, helping everyone to provide the value consumers want.
While he’s played every edition of Warhammer 40k and Warhammer Fantasy (since 5th Edition) and has been hobbying on miniatures since the 1980s, Titans of all sizes will always be his favorite! It’s even rumored that his hobby vault rivals the Solemnance Galleries, containing rulebooks filled with lore from editions long past, ancient packs of black-bordered Magic Cards, and models made of both pewter and resin.
