The closure of publisher Empire Interactive is reportedly all but assured, despite claims by parent company Silverstar Holdings earlier this week
that "nothing has been finalized."
UK trade site MCV published an internal Silverstar memo
it says was circulated to Empire staff today, stating that the company is "highly likely" to enter administration "in the next few days."
The memo also warns employees that they are likely to lose their jobs in the administration process. "I anticipate that formal redundancy notices will be sent out to all staff upon appointment of the administrators," writes Silverstar Holdings boss Clive Kabatznik, according to the report.
"I am sorry to be the bearer of bad news, but this is the unfortunate reality of our current situation."
Earlier media reports had suggested that the company had gone into administration already, but a Silverstar employee told Gamasutra earlier this week: "There are so many 'ifs,' 'ands' and 'buts'" regarding the situation at Empire Interactive."
Silverstar acquired Empire, publisher of the FlatOut
franchise and Big Mutha Truckers
, in 2006 for an estimated $9.1 million. Empire has offices in London, Germany, Italy, France, Spain and the U.S., and the firm has been in business for over 20 years.