Empire Interactive might go bust

Empire Interactive (Pipemania, FlatOut) is the next game company to be hit hard by the global recession. MCVUK reports the British developer has fallen into administration and its entire staff is expected to be laid-off. Sources tell Joystiq that Empire is in financial trouble because suppliers and retailers have not made appropriate payments to EI. Our sources also tell us that talks of a buyout to purchase EI have been going on since GDC in March; however, with a month gone by and still no buyer, the situation is looking rather grim.

Meanwhile, Empire's parent company in the US, Silverstar Holdings, denies that EI will be laying off its entire staff due to its financial woes but admits there will be losses. In fact, some employees back in the UK have already been given the pink slip. In any case, this probably means that Empire's summer line-up of Animal Paradise Wild and You Can Draw won't be out on schedule -- if they make it out at all.

Source: MCVUK
Source: MCVUK
Source: Gamasutra