GamesIndustry reports Tequila Works has filed for insolvency, and its founders have all stepped down.
Térence Mosca, the studio’s COO, has transitioned to a general manager role. In a statement, he explained “prolonged market conditions” left the studio with no other options. Despite this, he said he was “proud of what [Tequila Works] has accomplished together. […] We are doing everything we can to provide support and guidance to our teams during this difficult time.”
In early October, Tequila Works cut a “small number” of staff after it had cancelled an unannounced project. At the time, it said it would pivot its full attention to a separate unannounced title.
Tequila Works’ best known games
Prior to that, the Madrid-based studio was best known for titles such as Rime, Deadlight, and The Sexy Brutale. In 2022, Tencent acquired a majority stake in the studio, which planned to use the new money to build new games.
Last year, it released Song of Nunu, a League of Legends spinoff under Riot Games’ now-defunct Riot Forge banner. This past March, Tequila Works managed to bring its former Google Stadia exclusive Gylt to the Nintendo Switch.