08 Jun

Following the recent layoffs that hit all employees at the company, the Providence Journal reports that developer 38 Studios has now officially filed for bankruptcy. More details are included after the jump.

The Rhode Island State Police, the FBI, the Rhode Island Attorney General, and U.S. Attorney’s Office are reportedly investigating activities “that have recently come to light at 38 Studios.” The company held a $75 million state-backed loan as well as a $8.5 million loan from the Bank of Rhode Island that was based on a tax credit that has failed to materialize.

A spokesperson for 38 Studios told the Providence Journal the bankruptcy came 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.” Despite “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 that was founded by Curt Schilling, which released Kingdoms of Amalur: Reckoning¬†earlier this year,¬†was recently forced to lay off all of it’s 380 employees.