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Starbreeze has filed for administration after the underwhelming launch of Overkill's The Walking Dead left the company in dire financial straits.
It's only been a few days since the Swedish developer-publisher revealed it was cutting costs and refocusing on its core business with The Walking Dead struggling to pull in sales, but the news still comes as a surprise.
The situation looks to be much worse than was initially anticipated, and Starbreeze has explained the game's latest sales statistics have affected its financial forecast, resulting in a shortfall of cash in January 2019.
With the firm going through the wringer, Starbreeze CEO Bo Andersson has resigned effective immediately, and will also be departing the company's Board of Directors.
"The board of Starbreeze AB and the boards of the Company’s Swedish subsidiaries Starbreeze Publishing, Starbreeze Production, Starbreeze Studios, Enterspace and Enterspace International, have today filed for reconstruction with the Stockholm District Court," explains a press release.
"The decision is based on a shortage of liquidity and deemed to be a necessary step to give the company the time needed to negotiate a long-term financial solution and implement changes in the organization and operations. The financial targets for Q4 2018 and 2020 no longer applies."
Starbreeze has reassured staff that its reconstruction framework will include employee salaries, and that day-to-day operations will continue as usual.