Latest in Gaming

Image credit:

38 Studios paying state back by not paying employees

Eliot Lefebvre
May 17, 2012
Share
Tweet
Share

Sponsored Links

If you're familiar with the phrase "robbing Peter to pay Paul," you'll understand the latest episode in the ongoing 38 Studios financial crisis. Except replace "Paul" with "the state of Rhode Island" and "Peter" with "the company's employees." Yes, in order to make the most recent payment to the state that sparked this whole crisis, the Rhode Island Economic Development Corporation has been informed that Curt Schilling's company is paying the state but not paying any of the company's employees. According to anonymous sources, all temporary employees and contractors have also been terminated.

While this measure might help forestall immediate action, the company is still on the hook for a $75 million loan, and Rhode Island governor Lincoln Chafee has made it clear that the company is looking for more assistance from the state in order to remain viable. 38 Studios continues to make no public statements at this time. We'll no doubt have more on this story in the coming days as it continues to develop.



All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

LG's rollable OLED TV goes on sale for $87,000

LG's rollable OLED TV goes on sale for $87,000

View
New trailer for 'The Mandalorian' season two brings back most of our old friends

New trailer for 'The Mandalorian' season two brings back most of our old friends

View
Intel sells its NAND flash memory business to SK Hynix for $9 billion

Intel sells its NAND flash memory business to SK Hynix for $9 billion

View
Can Evernote make a comeback?

Can Evernote make a comeback?

View
The SSC Tuatara has broken 330 mph and shattered a world speed record

The SSC Tuatara has broken 330 mph and shattered a world speed record

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr