Liquid Swords, the Samson-based studio, has filed for bankruptcy, with reports indicating that employees have not received payment for the past two months

An image depicting Samson, credited to Liquid Swords, can be seen above.

The Swedish game development studio Liquid Swords has declared bankruptcy, reportedly after not compensating its staff for two months. The firm has engaged Cirio, a Swedish legal practice, to manage the situation. The law firm recently released a preliminary document for interested parties in purchasing the company.

Based on information from the financial publication Breakit, and shared by Game Talk, the salary delay of over two months led employees to seek bankruptcy proceedings. Any unpaid wages are expected to be settled by the Swedish government's wage guarantee program.

Earlier insights from Breakit revealed that Liquid Swords struggled with "an acute liquidity shortage," a problem that founder Christofer Sundberg mentioned seemed insurmountable. As a result of the insolvency, all 27 staff members are to be terminated, with Cirio indicating new purchase agreements will not include existing labor contracts, necessitating any new employer to arrange fresh employment contracts.

Key assets up for auction encompass the intellectual property related to Samson, Liquid Swords' inaugural game, launched in April, alongside other intellectual properties, development-related resources, and equipment essential to the studio's activities. The deadline for potential buyers to submit bids is set for October 21, 2026.

As outlined in the bidding document, by October 14, 2026, Samson achieved sales of 151,900 copies, resulting in SEK 24.1 million (approximately $2.4 million) in sales revenue.

Liquid Swords was established in 2020 by Avalanche's co-founder Sundberg. Two years later, NetEase invested in the company, acquiring a minor equity stake. More recently, in February, the studio executed staff reductions, describing these as a necessary step to ensure its long-term viability. The specifics of the reduction in workforce size were not disclosed by the company.