Sources at Timegate, who filed for bankruptcy last week in the wake of the Aliens: Colonial Marines debacle, are claiming that the company has now laid off all of its staff.

Staff were reportedly sent home early yesterday, as another source claimed that SouthPeak Interactive — a company to whom Timegate owes something like $10 million — have been successful in forcing Timegate to liquidate rather than proceed with bankruptcy.

If Timegate were allowed to go bankrupt, they would be able to essentially wipe away the $10 million debt and others, and reform as another company without any legal repercussions. SouthPeak were reportedly successful in convincing a bankruptcy judge to change the Chapter 11 bankruptcy proceedings into a Chapter 7 liquidation, to allow creditors like SouthPeak to extract whatever money they can out of the company before it collapses.

Timegate have refused to comment.

Source: Kotaku

After laying off nearly 30 staff in March, Timegate studios has now filed for Chapter 11 bankruptcy protection in the state of Texas.

Timegate, which became infamous recently after it was revealed that it was the developer outsourced by Gearbox to complete the embarrassingly poor Aliens: Colonial Marines, was hit with a $7 million lawsuit by SouthPeak Interactive over the development of another shooter, Section 8.

The filing by Timegate lists a number of creditors, ranging from Epic Games, SouthPeak Interactive and Agora Games, all the way down to a local pizzeria to whom they owe $34.80. Yes, really.

Timegate recently announced their new shooter Minimum, which at this rate is looking unlikely to make it to completion.

Source: Polygon

In the wake of an impressively poor critical reception for Aliens: Colonial Marines, Gearbox’s outsourced-developer Timegate have issued layoffs affecting around 25 of their staff.

Speaking to Polygon, TimeGate president Adel Chavele said that “today, we had to make the difficult decision to let go of some great game developers. This is never easy, and we’re doing all we can to assist those developers affected.”

“TimeGate is preparing, as is the entire industry, for the transition to next-generation consoles and new business models. As part of this reinvention, all projects and strategic initiatives continue to move forward at the studio.”

Polygon is reporting that an internal source claims the layoffs are related to a publishing contract falling through — which many are speculating is likely connected to the poor reception of Colonial Marines.

Source: Polygon