A source at video game blog Joystiq tells FOX 25 that all employees at Curt Schilling's 38 Studios have been laid off.
The news comes after Joystiq.com reported that workers at 38 Studios haven't gotten a pay check since May 1 and their health insurance runs out Thursday.
The former Boston Red Sox legend had been in discussions with Rhode Island politicians to keep his video game company afloat- even after an initial infusion of a $75-million loan. He moved the company from Massachusetts to its new home in 2010.
Governor Lincoln Chafee and his staff were looking into whether or not 38 Studios could even receive subsidies to stay afloat since the company was incorporated in Delaware.
WPRI-TV obtained a copy of the e-mail Schilling sent out as part of the dissolving...
“The Company is experiencing an economic downturn. To avoid further losses and possibility of retrenchment, the Company has decided that a companywide lay off is absolutely necessary. These layoffs are non-voluntary and non-disciplinary. This is your official notice of lay off, effective today, Thursday, May 24th, 2012.”
In one of those unrelated-probably related anyway moves...
CVS Caremark executive Helena Foulkes resigned as vice chair of the R.I. Economic Development Corporation. Moody's Investors Service, according to WPRI-TV, said Rhode Island will pay off bondholders if 38 Studios defaults.
Here's some of the last set of stories before this afternoon's announcement...
((HT: WPRI-TV Providence))
38 Studios may miss out on tax credits: wpri.com
Governor Chafee held a press conference at the Rhode Island state house saying that he would gladly extend the life of the company if there was any confidence in the company's profitability, and he didn't see it coming.
"It's not a good situation," he said. "We just have to deal with the ramifications."
"I'm not here to share good news. I wish the situation was different."
Here are the documents associated with the 38 Studios collapse... including the Cure of Default Letter from the 18th of this month...
Here's Schilling leaving Studio 38 with boxes in the back of his car...
Never a good sign... and you can see his license plate clear as day...
If anyone is interested in tracking him down for a stern talking-to...
((HT: MyFoxBoston))
Did you see the plate...???
Here's more coverage from Providence...
((HT: WPRI-TV again))
Schilling's firm lays off all employees: wpri.com
The larger question the HQ has in all of this is: Where did the almost US$50-million go in a TWO-MONTH period...???
How do you burn through something that large that fast...???
And what is the four-letter's stance on Schilling as an analyst...??? The HQ is fairly certain that Schill won't be doing any radio in Boston any time soon, either...
Here's one last round of coverage (for now) from our friends at NECN...
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