Spanish developer Tequila Works declares bankruptcy

Madrid studio Tequila Works has declared bankruptcy and begun bankruptcy proceedings.

The latest game published to date is Song of Nunu, developed as part of Riot Games’ Riot Forge initiative.

The developer of Deadlight, The Sexy Brutale and Rime, among others, had already announced layoffs last October as part of an “internal restructuring.” In theory, this restructuring was a response to the cancellation of a project the studio was working on.

As a result of the bankruptcy filing, the board of directors consisting of its founders Raul Rubio and Luz Sancho left their posts, and Terence Mosca, who previously served as chief operating officer, became the new CEO of the company. Officer.

Since 2022, Tequila Works has been working on several projects funded by the Chinese company Tencent. It appears that this funding would have been cancelled, leaving Tequila Works in a precarious financial position.

Some company employees expressed surprise at the news. They were not initially laid off, and the company expects them to continue working and “carrying out their duties” over the coming weeks, although they admit they are not sure they will be able to pay the appropriate salaries.

We reached out to Tequila Works to learn more about the situation. At the moment they do not want to make any statement on this matter.