Empire Interactive Selling Razorworks, Will Cut Staff by 30%

Publisher Empire Interactive (a subsidiary of Silverstar Holdings), known for titles such as Starsky & Hutch, Big Mutha Truckers, Ford Racing and FlatOut, announced today that the company has "implemented a number of organizational changes designed to maximize efficiencies within the company, eliminate certain unprofitable operations, and better position the company for growth."

The biggest move comes from a planned sale of Razorworks, which it acquired in 2000. Razorworks is comprised "solely of a development team and physical assets," said Empire, and the sale will not involve giving up any intellectual property or affect any current projects. Empire intends to continue to use outside developers for game development. It's unclear at the moment who will purchase Razorworks, but Empire said it's "currently in negotiations with potential acquirers and looks to complete the transaction in the coming weeks."

The divestiture of Razorworks will ultimately lead in a headcount reduction of about 30 percent at Empire, and this is expected to deliver cash flow savings of approximately $3.0 million per year, the company said.

Furthermore, beyond the sale, Empire is reorganizing its executive management team through promotions, and the company also is planning a relocation of its headquarters to a modern facility near Muswell Hill, a suburb in north London.

"The changes at Empire mark an important new direction for the company as we head into fiscal 2009. These significant cost savings and managerial changes, along with our planned fiscal 2009 game line-up, position the company for a strong fiscal 2009," stated Clive Kabatznik, CEO of Silverstar Holdings.