The US studio of Factor 5 has closed, with the company blaming the bankruptcy of failed publishing outfit Brash Entertainment.
"We are sorry to announce the closure of the San Rafael-based Factor 5 studio, but the obstacles created by the sudden bankruptcy of Brash Entertainment for the continuation of operations have turned out too great to overcome in the current economic climate," said Achim Moller, CEO of Factor 5 in Germany.
"Factor 5 GmbH, is entirely unrelated to Factor 5 Inc and the circumstances surrounding Factor 5 Inc's recent challenges. Although we are saddened by Factor 5 Inc's situation, our corporation will remain unaffected by these developments and has partnered with both old and new friends in the industry who will reveal our upcoming projects over the next few months," detailed Moller.
As far back as December last year staff at Factor 5 had complained that wages had not been paid following the cancellation of projects.