Remember how we heard earlier this week that Curt Schilling’s video game company, 38 Studios, was going through some rough times? Well, things are looking even more dire now.
According to Erika Niedowski and Laura Crimaldi of the Associated Press, 38 Studios tried to pass off a bad $1.1 million check to Rhode Island as payment on a loan. Yikes.
38 Studios was originally based in Massachusetts, but Rhode Island lured the company in 2010 with a $75 million loan guarantee that they hoped would bring new jobs to the state. Things haven’t exactly worked out as planned. Schilling’s company couldn’t make the $1.1 million payment on May 1 as expected and after the check was finally hand-delivered to the state’s Economic Development Corp. earlier this evening, a company official told the agency that there were insufficient funds to cover the owed amount.
38 Studios asked for additional state assistance yesterday and it appears that if they can’t get a loan from someone, they could go belly-up pretty soon.