GRIN's founders, Bo and Ulf Andersson have confirmed the studio has been forced to close, in a statement on the company's website.
"It is with a heavy heart we announce today that GRIN has been forced to close its doors," they confirmed. "This [is] as too many publishers have been delaying their payments, causing an unbearable cashflow situation.
"After twelve years of hard work, employing hundreds of wonderfully talented men and women, it is over. It has been a great adventure and the GRIN family has experienced what few have.
"Looking back at twelve years of games, titles such as Ballistics, Bandits, GRAW 1 & 2, Bionic Commando Rearmed, Wanted: Weapons of Fate, Terminator: Salvation, Bionic Commando and our unreleased masterpiece that we werent allowed to finish; it has been a great ride."
The post carries on to thank GRIN's employees and companies it has worked with since the Stockholm-based studio was founded in 1997, including Ubisoft, which it thanks for the "wonderful opportunities on Ghost Recon Advanced Warfighter". "You kicked us off - thanks!" said the statement.
Rumours had been mounting this week that the studio was in trouble, with the reported closure of its recently-opened offices in Barcelona and Gothenburg and staff being told not to go into work.
Yesterday, it was confirmed 25 employees of the troubled company would be branching out and forming a new company, Outbreak Studios.
GRIN's official statement ends: "And to all our gamers - we hope you had a good time.