The Providence Journal is reporting that 38 Studios has filed for bankruptcy today and that a series of investigations into the company by state and federal agencies are incoming.
This news is not all that unexpected given the financial turmoil the company has suffered over the last few months. Much of it founder Curt Schilling and other members of 38 Studios have blamed on Rhode Island Governor Lincoln Chafee's public disclosure of its troubles.
The studio issued the following statement to the Providence 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."