38 Studios closure leaves former staff with second mortgages
The tales of internal mismanagement at 38 Studios keep on emerging, even after the developer was forced to lay off its entire staff and close its doors last week. Now, former employees are claiming that the company has left them stuck with a mortgage on a second home.
As part of a relocation program (which aimed to help employees make the move from 38 Studios’ former location in Massachusetts to Rhode Island), the developer took ownership of the houses of an unknown number of staff. Some of these employees have stated that they were subsequently told that their old homes had been sold.
This turns out not to be the case. Former staff members say they have been contacted by banks, asking why mortgages on the ‘sold’ homes are no longer being paid.
If 38 Studios was using Rhode Island money (from the $75 million USD loan used to lure the developer to the area) to pay these mortgages, it potentially violates the terms of the agreement with the state.
It’s just another piece of misery for the former employees of the studio, who already have had to deal with the sudden lay-offs and immediate cessation of their health care benefits.
An unnamed 38 Studios official is said to be looking into the mortgage matter.
In related news, 38 Studios has confirmed the unsurprising news that Kingdoms of Amalur: Reckoning will a patch.
Image taken from 38 Studios’ Kingdoms of Amalur: Reckoning