Spanish studio Tequila Works declares bankruptcy

With the withdrawal of Tencent's support and the cancellation of its next game, the situation for the company became untenable.

A bad day for video game development. Madrid-based studio Tequila Works, responsible for titles such as The Sexy Brutale, RiME, Gylt and Song of Nunu: A League of Legends Story, has filed for bankruptcy. The management has been unable to turn around the difficult situation it was left in a few months ago when Tencent cut off the studio's funding, leading to a major restructuring of the development team and the cancellation of its unannounced ongoing project.

The management has been struggling to keep Tequila afloat ever since, but the conditions have slowly choked the studio's accounts, and today Gamesindustry.biz reported that the studio has filed for bankruptcy, as the management resigned. General Manager Térence Mosca, until now COO of Tequila, will take the lead in this process.

Tequila has been one of the most prominent victims of Tencent's investment turnaround in Japan and the West. A new direction for the Chinese giant in which it has significantly reduced its involvement in Western companies and is focusing on developing studios in its own country.

Let's hope that the talented workers of Tequila Works will soon find a new professional destination and continue to offer their great work to video games.