Troubled company 38 Studios LLC declared themselves bankrupt last week, just one day after an investigation into their financial dealings by American authorities began.
As first reported by WPRI (and spotted by Edge), 38 Studios - plus its three subsidiary companies - filed for bankruptcy last week, and have ceased operating. A Federal investigation is now underway to determine the causes behind the collapse of the business.
Studio founder Curt Schilling's representative said: "After ongoing negotiations with the state of Rhode Island and potential investors and other interested parties, the company has been unable to find a solution to the current stalemate."
The company's largest debt was $115 million owed to the Rhode Island Economic Development Corporation, leaving local tax payers to foot the bill.
After defaulting on a loan repayment the company was subsequently forced to release all their staff at the end of last month, effectively ending their ability to operate.