Gylt and Rime studio Tequila Works files for insolvency, says "prolonged market conditions" left no other option
"We are doing everything we can to provide support and guidance."
Tequila Works, the Madrid-based company known for the likes of Gylt and Rime, has filed for insolvency.
As reported by Eurogamer's sister site GamesIndustry.biz, the company founders have also stepped down.
In a statement, newly appointed general manager Térence Mosca said he was "proud of what [the team] has accomplished together". However, due to "prolonged market conditions", the company had no other option but to file for insolvency.
"Since its founding in 2009, Tequila Works' game-development philosophy has always focused on 'creating things with gusto'," the statement read. "We are doing everything we can to provide support and guidance to our teams during this difficult time."
Last month, Tequila Works announced it had laid off a number of staff as part of a studio restructure. At this time, it also made the decision to cancel an unannounced game.
Tequila Works released its then-Stadia-exclusive Gylt back in 2019. Following this, the game made the jump from Google's cloud gaming service to PC, PlayStation 5, PS4, Xbox Series X/S and Xbox One, before subsequently arriving on Nintendo Switch in March. This multiplatform push followed Stadia's shut down last year.
Its most recent game was Song of Nunu: A League of Legends Story, which was released under the now defunct Riot Forge publishing label.
For more on this topic, be sure to read Chris Dring's feature: What is going on with layoffs in the video games industry?