More 38 Studios Woes

Things are going from bad to worse for 38 Studios and its employees. On Thursday a company representative hand-delivered a check for the $1.1 million payment that was due on May 1 to the Rhode Island Economic Development Corporation, but the company then said that it didn't have the money in the bank to cover the check. If a private citizen wrote such a check they would be under arrest and enjoying the amenities of a Rhode Island jail without bail, but that's another story altogether. This is according to a Boston Globe report.

Computer & Videogames reports that full-time employees for the company were not paid this week and all temporary workers and contractors were laid off this week.

Where the company goes from here is unknown, but it is asking the state for more money. Many politicians in Rhode Island don't want to invest any more money into 38 Studios, but even Governor Chaffee admits that it is in the best interest of the state to do what it can. That's a strong statement coming from the guy that was strongly against the investment in the first place during his race for 2010…

We will continue to follow this story as it develops, but this Boston Globe report has plenty of colorful language from Rhode Island's political class.

Source: Computer & Videogames

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