Former 38 Studios Staff Getting Stuck With Two Mortgage As Company Fails To Keep Promise

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Last week we reported that the entire staffs of both 38 Studios and its subsidiary, Big Huge Games had been laid off. As if that wasn’t enough, it seems that a promise the company made has not been honored and it has several former staff members in quite a bind. The company recently moved to a brand new HQ in Rhode Island from their old home in Massachusetts and as part of that deal the company agreed to sell some employees old homes. In fact, many had been told by the company that their homes were already sold, when in actuality they hadn’t been able to do so.

Now with 38 Studios looking as if they are on the edge of bankruptcy, many of its former employees are left looking at how they are going to pay not one but two mortgages. A former employee has said they have already been contacted by their bank to inquire as to why their mortgage on their old home hadn’t been paid, even though they were told the home was sold last year. I assume that while the company was solvent, they were making the payments on the employees behalf and that’s why they are only getting calls from the banks now. The people affected are thought to be those involved in to studio’s relocation program after the company received a $75m state-guaranteed loan from Rhode Island to lure it away from its offices in Massachusetts. For their part, state officials said they “had no independent knowledge of the mortgage issue”.

This story just seems to get worse and worse the more we find out. If this is true that 38 Studios made an agreement with these individuals and then failed to keep that obligation then they are a bunch of…well I can’t even say because kids read this site but you can probably figure out what I want to say. At this point, it’s not clear whether the folks involved had any kind of legal agreements or was it just a “we’ll take care of it” which from a legal standpoint are totally different animals. Where I’m from, your word is your bond, if you dont’ have that you have nothing. And where’s Curt Schilling in all this? He was out in front when things were going good but as far as I know we haven’t heard anything from him or the company. This is unacceptable. The people caught up in this two mortgage situation could quite possibly be ruined and eventually end up having to file bankruptcy all because they trusted a company to do right by them. I understand that companies fail, but it shouldn’t bring its employees down with it like this.

Hit up the comments and let us know what you think about 38 Studios and there handling of this entire situation. If any former 38 Studios employees read this, please let us know if any other incidents like this occurred.

[source link=”http://www.develop-online.net/news/40924/Ex-38-Studios-staff-struck-by-second-mortgages”]Develop[/source]

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Lorenzo Winfrey

Lorenzo Winfrey

Editor-In-Chief at ZoKnowsGaming
I am the Co-Ceo of DLT Digital Media. We are a company that is focused on developing new and innovative web properties in addition to developing WordPress based web sites for others. But before I was all that, I was a gamer.
Lorenzo Winfrey