Telltale Games' "majority closure," which resulted in the bulk of its staff being laid off without severance pay, came only a day after potential investors walked away from funding talks.
As reported by Variety, South Korean developer Smilegate and U.S. media outfit AMC were mulling over the possibility of investing in the studio, with Telltale management hoping to hash out a deal that would save the company.
Talks with AMC in particular were perceived to be going well, and internally it was expected that a funding deal would be confirmed within a few weeks - one employee explained the situation was being painted as a 'done deal.'
That wasn't to be the case, however, and both companies eventually pulled out of talks last Thursday, just hours before Telltale announced its closure.
Since breaking the news, Telltale has canceled upcoming titles including Stranger Things and The Wolf Among Us 2, and is currently looking to work with potential partners to finish the final season of The Walking Dead.
The studio has also been hit with a class action lawsuit, with one former employee alleging the company violated California's WARN Act by failing to give 60 days notices ahead of the mass termination.
As it stands, Telltale currently comprises a skeleton crew of 25 developers, who've been kept on for the time being to fulfill the company's obligations to its board and partners.