BottleRocket Entertainment has closed its doors, according to its founder Jay Beard, following a fight for survival in the past six months.
The company became embroiled in controversy earlier this year when Namco Bandai pulled it off of the Splatterhouse project - a move which the developer contests was not down to it missing any milestones, but bad management on the publisher's side.
Following that rift, several members of the original team left the company to continue work on the game, while the developer was believed to have signed a new deal with Brash - which subsequently went bust itself.
In an email to friends, sent to GamesIndustry.biz, Beard wrote of his disappointment at the predicament, but noted that he was currently building a new studio "from the ground up".
"It is with deep regret that I have to inform you of the closure of BottleRocket," he wrote. "After fighting to keep the doors open for the past six months we have decided to close and move on.
"BottleRocket was in business for seven years and I feel that we developed a sound reputation for quality and creativity. I was once told that we 'zigged while others zagged,' and I like to think that we shall be remembered this way.
"We had the opportunity to meet and work with many talented and passionate individuals along the way, and I want to take the opportunity to thank you all for everything that you did for BottleRocket. Seven years wasn't long enough for our plans to bear fruit; but it was a decent run.
"I am now in the process of building a new development studio from the ground up and look forward to us crossing paths once more."
The company also developed the Rise of the Kasai and Xiaolin Showdown titles, with many of its employees originating from Sony San Diego, having worked on The Mark of Kri.