Gylt and The Sexy Brutale developer Tequila Works has filed for insolvency, with newly-appointed general manager Térence Mosca citing "prolonged market conditions" as the reason for the studio's predicament.
According to a GamesIndustry.biz report, Mosca says he's proud of what his team "has accomplished together", but that the aforementioned market conditions gave his studio no choice other than filing for insolvency.
As a reminder, Tequila Works canceled an unannounced project and laid off an unspecified number of staff back in October, calling the current moment in the gaming industry an "incredibly difficult time". Evidently, those layoffs and that cancellation weren't enough to save the studio.
It's worth noting that insolvency isn't necessarily the same thing as a studio shutdown; essentially, insolvency means an entity isn't able to pay the debts it's incurred, which means Tequila is functionally out of money but not necessarily defunct yet.
As such, the studio could undergo a reorganization under Mosca, although it looks like it might take a pretty mighty reorganization effort in order to save a studio that seems to have been struggling for quite some time.
In the statement provided by GI.biz, Mosca says that the studio is doing everything it can...
