Veteran artist Jesse Sosa, who departed Terminal Reality in 2011 after ten years with the company, confirmed the closure in a Facebook status update this morning, which reads in part, "TRI seems to have finally shut down." As Gamasutra points out, Sosa's blunt statement is the highlight of the scant evidence for the studio's shutdown, though our attempts to confirm the report were met with further evidence that Terminal Reality is now defunct.
A visit to the company's website currently asks users to visit Terminal Reality's Facebook page, while claiming that the site is undergoing renovations. The Facebook page was last updated on October 10 - not an alarmingly long time ago - though the update prior to that is from late August. Likewise, the company's official Twitter account hasn't been updated since March 22. In a last-ditch attempt to reach somebody - anybody - at Terminal Reality, we phoned the studio only to find that its phones no longer work.
While we still lack an official confirmation of the closure, it seems apparent that the company is not open for business. It's currently unknown how this will affect Terminal Reality's current employees, though we wish them the best of luck.