Rune Factory and Lufia series developer Neverland Co. has ceased operations and will file for bankruptcy soon, the studio revealed on its website. Siliconera reports that Neverland's statement cites recent "changes in the business environment" as one of the studio's difficulties. Attempts to secure funding for Neverland's future development have been unsuccessful.

The news follows a statement in August from Yoshifumi Hashimoto, a producer with Rune Factory 4's publisher, Marvelous AQL. Weeks after its release, Hashimoto stated that RF4 had performed well enough to "greenlight a sequel." Hashimoto also posted on Marvelous AQL's blog for RF4 after Neverland announced its closure, teasing that while the publisher's next title will "remain a secret," the staff members are doing well.

This article was originally published on Joystiq.