38 Studios Skips Payroll in Favor of Paying Back State [UPDATED]

Man, that sucks. Didn't much like KoA but people losing their jobs and not getting paid sucks no matter what.

Wow. I know it's not unheard of for a CEO or president or other senior level people to forego payment when things like this happen, but everyone in the company? What the hell !?

This is unfortunate. I hope they get it together, but I doubt they'll survive when this is over.

Sad news. I wish all the employees at, or formerly at, 38 studios the best.

Oh man. This is going to be over real quick for 38, isn't it? Good luck to everyone over there.

Also, Curt is looking terrible these days.

Yeah, this is looking pretty bad.

Curt could use a few more shillings.

one word reply

Oh boy

oh wow.

Wow, that is real rough for the staff there. I hope they are all able to fall into new jobs real quick.

It's kind of amazing to me that this is legal.

Harsh.

Damn.

What a bummer for all those guys and gals not getting paid. Hopefully this works out for them.

Oh no!

Coming on the heels of yesterday's circus-like meeting and press conference regarding the developing situation at 38 Studios, WPRI is reporting that the company is in the process of paying its overdue $1.125 million payment to the Rhode Island Economic Development Corporation, but is doing so at the expense of its own employees.

Current reports state that 38 skipped payroll this week, leaving the more than 300 full-time employees at the company without a paycheck. In addition, a source has told Joystiq that all temp and contract employees had been let go as of this week.

In the wake of the situation at 38, Keith Stokes, the executive director of the RIEDC since 2010 and architect behind the $75 million loan that brought the studio to the state from Massachusetts, has resigned.

38 Studios still has yet to comment publicly on the situation.

UPDATE: Just when you thought this whole thing couldn't get any worse, WPRI now reports that the check 38 Studios reps hand-delivered to the RIEDC has been returned due to insufficient funds.