Flagships Studios' CEO Bill Roper has confirmed reports that the company has had to lay off the majority of its staff.
However, he claims the company is still functioning, and has not yet closed its doors completely.
"It is with deep regret that I must announce that Flagship Studios has laid off most employees," said Roper in a statement issued to Voodoo Extreme.
"However, the core management and founding team members are still at Flagship."
"The past five years have been an incredible experience for us, but unfortunately, we couldn't sustain the size of the company any longer," he added.