Ontario-based publisher Hip Interactive has ceased operations with immediate effect, despite last minute talks between negotiators and a potential investor that could have saved the company.
According to an official statement from the firm, "discussions with a third party to provide interim relief in respect of the company's immediate financing needs were not successful."
Hip executives warned investors last week that the company was struggling to pay debts, and had defaulted on its second loan. As the publisher attempted to find a solution to its financial woes the main investor - Congress Financial Corp. - requested that the Canadian court declare the company bankrupt.
All executives on Hip's board of directors have resigned, and Ernst & Young has been appointed interim receiver in accordance with the Canadian Bankruptcy and Insolvency Act. Hip's subsidiaries will remain in operation under the receiver's supervision.
Hip's forthcoming titles included Call of Cthulhu: Destiny's End, George Romero's City of the Dead, Jackie Chan Adventures and Rugby Challenge 2006. The future of these games has not yet been announced, but it seems likely that other publishers will be keen to pick up some of the more high profile titles.