Developer Tequila Works has filed for insolvency after laying off several of its staff last month amid "prolonged market conditions."
The Rime and Song of Nunu developer also canceled an unannounced project that was supposedly in development. Newly appointed general manager Terence Mosca issued a statement talking about the latest developments.
Tequila Works Files for Insolvency
Mosca said that he was extremely proud of what the development team has been able to accomplish while working together. However, he noted that prolonged market conditions have forced the company to file for insolvency.
The statement added that since Tequila Works' founding in 2009, the studio's game-development philosophy has always focused on "creating things with gusto."
Mosca noted that they were committed to providing support and guidance to the people affected by the transition.
The debut game of the studio was Deadlight, which was released in 2012. The developer has had many notable releases since then, including Rime and The Sexy Brutale in 2017 and Gylt in 2019, according to the Video Games Chronicle.
A major change for Tequila Works was when Tencent became the studio's majority shareholder in 2022. This was the time when the developer said that the funding would be used to fuel its growth for the development of original intellectual properties.
Tequila Works' latest project was Song of Nunu: A League of Legends Story, which was released last year. This was a game that was launched under the now defunct Riot Forge publishing label.
Supporting Affected Team Members
The studio was able to bring its former Google Stadia exclusive Gylt to the Nintendo Switch console earlier this March. This allowed more people to get access to the developer's work, Game Developer said.
Riot Games announced in January 2024 that it was laying off 11% of its staff as well as making the decision to shut down Riot Forge.
The latter was originally created as an indie publishing label to create spin-off titles for the company's most popular IPs, such as League of Legends.
Song of Nunu was beloved by many fans of League of Legends as well as players who had no idea about the latter. It was an adorable platformer title that featured Nunu and the yeti Willump, who manages to be both terrifying and unexpectedly cuddly.
The game puts players inside a snowy, frozen world known as Freljord and builds up the duo's friendship throughout their adventures. This is particularly useful for those who do not know a lot about League of Legends lore, according to Gaming Age.
