We've been following the sad saga of 38 Studios, Curt Schilling's video company that moved to Rhode Island after receiving a whopping loan from the state. Well, things haven't gone well. They haven't employed the number of people they promised. Their big game isn't close to being on schedule. The state is afraid they might go under, and leave taxpayers on the hook for more than $100 million. Schilling pleaded for a bailout.
Three things happened today. A spokesman for the RI Economic Development Council said 38 Studios was unable to make payroll this week, stiffing the few workers whose jobs they did create. Then they delivered a $1.125 million check to the state, an overdue payment as mandated by their loan. Then, shortly after, the state returned the check. It had bounced. 38 Studios doesn't have enough money.
Earlier this week, 38 Studios and state officials had discussed the possibility of additional tax credits to get the company back on its feet. That's probably not enough. It doesn't help to owe less when you have nothing to pay in the first place. Without another, major loan (aka good money after bad), 38 Studios is done.