According to an Associated Press report (via NBCSports), the studio, named after Schilling’s uniform number, went to bankruptcy court in Delaware on Thursday and had to lay off its entire workforce in May.
In 2010, Schilling's company, originally known as Green Monster Games, moved its headquarters from downtown Maynard, Mass., to Providence, R.I., after being given $75 million in loans from the state. They had promised to create 450 jobs by the end of this year.
The news of bankruptcy coincides with a police investigation being conducted by both state and federal authorities.
According to Mike Stanton of The Providence Journal, Col. Steven G. O’Donnell of the Rhode Island State police admitted that his agency, the FBI and US Attorney’s office "are working together to investigate activities that have recently come to light at 38 Studios."
O’Donnell is referencing the state loan as well as another $8.5M loan from Bank RI.
The company is currently late on a $1.1 million payment that it owes to Rhode Island, and it is looking likely that the state will have to deal with some debts left by the studio.
Schilling reportedly could not be reached for comment on the bankruptcy filing or police investigation.
The studio released just a single game during its existence, 2012’s Kingdoms of Amalur: Reckoning.