Fantasy Aces files for bankruptcy as FantasyDraft deal fails
Daily fantasy sports (DFS) operator Fantasy Aces has filed for bankruptcy after a proposed acquisition by rival FantasyDraft fell through.
Last month, FantasyDraft announced that it had struck a deal to acquire certain assets from Fantasy Aces, including the company’s player base and respective account balances.
However, as reported by Fantasy Alarm, FantasyDraft has opted to back out of the deal, citing “issues identified during our due diligence”.
In response, and after players were unable to access their accounts for more than a week, with a message on the operator’s website informing customers that an “update is coming shortly”, Fantasy Aces has filed for Chapter 7 bankruptcy.
In a filing with the Central District of California, Fantasy Aces said it had assets of $1.8 million (€1.7 million/£1.4 million), with liabilities of just under $3 million.
In addition, a Bank of America account that is listed as ‘Players Account’ has just $2,419.86 in it, with another having $791.43.
In an email to customers, Fantasy Aces said: “After spending over a year attempting to secure long-term capital, including recent negotiations with two notable companies which subsequently failed to close, we are left with an unresolvable financial burden and have spent every waking minute attempting to find a solution for our players, most importantly.
“We have unfortunately exhausted every possible financial option with no success.
“We fought as hard as we could, in the end without a major infusion or acquisition we just were not able to make it.
“Our site is temporarily shuttered and all accounts are on hold during this time while we work with the bankruptcy court in finding the fastest possible solution for our players.”
Related article: FantasyDraft to acquire Fantasy Aces