38 Studios, the development company co-founded by ex-pitcher Curt Schilling, has officially filed for bankruptcy according to The Providence Journal.
In a statement obtained by the Journal, "This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. 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."
38 Studios' financial problems became clear last month when a check for $1.125 million to the Rhode Island Economic Development Association after Schilling moved the studio from Massachusetts to Rhode Island. Soon they laid off their entire staff, as images leaked from their follow up to "Knights of Amalur: Reckoning," titled "Project Copernicus," leaked onto a fan forum. It then became revealed after the lay off that no one on staff had been paid since May 1st. According to ongoing stories from the Journal, bankruptcy was always possible.The only bright spot came when the online development community pooled their resources together for the #38jobs hashtag on Twitter and later incorporating the avaliable jobs in the industry via Google Docs.
Rhode Island Governor Lincoln Chafee will issue a press conference later today with no intended topic, but that's essentially to ignore the $75 million debt wearing a bloody sock in the room.
