Tequila Works, the developer of the game Rime, has filed for insolvency

Tequila Works has submitted an insolvency filing.

In a recent announcement, the new general manager, Térence Mosca, expressed pride in the team's achievements but mentioned that unfavorable market conditions have left the Madrid-based company with no choice but to declare insolvency.

As a result, the company’s founders have stepped down, appointing Mosca as the general manager.

Since its inception in 2009, the studio has been guided by a philosophy of producing creative works with enthusiasm, according to the statement.

"We are committed to providing our teams with support and leadership during this challenging period," it added.

Founded in 2009, Tequila Works is known for developing games such as Rime and Gylt, as well as co-developing and publishing The Sexy Brutale. In 2022, the company received a financial boost from Tencent. However, despite recent layoffs last month, these measures were insufficient for sustaining the studio's operations.

Correction: The initial version of this article incorrectly referred to Tequila Works as the sole developer of The Sexy Brutale. The studio served as a co-developer and publisher, and this has now been corrected.