Tequila Works has filed for bankruptcy.
Newly appointed general manager Térence Mosca said in a statement that he was “very proud [the team] achieved together,” but “long-term market conditions” mean Madrid-based Tequila Works had no choice but to file for insolvency.
As a result, the founders of Tequila Works resigned and Mosca was named CEO.
“Since its inception in 2009, Tequila Works' game development philosophy has always been to 'make things with taste,'” it said in a statement.
“We are doing everything we can to provide support and guidance to our teams during this difficult time.”
Tequila Works was founded in 2009 and has developed games such as The Sexy Brutale, Rime and Gylt. It secured an investment from Tencent in 2022, and although it laid off a number of staff last month, the cuts have seemingly not been enough to keep the studio afloat.