Originally Posted by BBC News
Page last updated at 13:26 GMT, Monday, 31 March 2008 14:26 UK
Habbo to close for 'fundraising'
Sulake LTD, an online company specialising in social networking, announced yesterday in a press conference held in Helsinki, Finland, that its primary business venture, 'Habbo Hotel', will close down indefinitely worldwide to enable 'fundraising' efforts to ensure a future for the teenage chat site.
Chief Executive Office, Timo Soininen, gave his speech infront of the Finnish Press, share holders, investors and other benefactors, declaring that "a state of urgency has been reached". He claims that although the populary of the famous chat site has not faltered greatly, the revenue has seen a vast drop, which at times as left Sulake "very close to bankruptcy".
Soininen went on to say that "[Sulake] thinks that the primary reason for this drop in revenue is due to the Habbo Exchange facility."
"Close to bankruptcy"
The exchange facility is a way of transferring Habbo 'credits' safely through a trading system in-game. This enabled users with large amounts of Habbo furniture [furni], to trade their unwanted items for the in-game currency, without the need to spend further cash from their own pockets.
"In hindsight, we should have forseen this problem. However, we never thought that the Exchange facility would become so popular."
He also further cited Tax-increases and recessive globals markets as another cause of the lack of funds.
"Urgent action"
"What we propose is to globally shut down the Habbo Chat Facility for an undetermined period so as to actively seek other investors so that Habbo can secure a place in the future. Currently we are losing profit of around %15 per annum, and urgent action is required."
The announcement was met with controversy following the meeting as many Share Holders discussed their dismay at the decision, while many influential investors even stated they are considering withdrawing their investments.
One of the investors told us: "I am shocked at their decision. I have not invested such large amounts of money, only to have it get smaller and smaller because of their incompetency. I do not blame the users themselves. I blame the lax working regulations and lack of care for the customer. I am also considering withdrawing my investment"
