Tequila Works Files for Insolvency Amid Market Challenges

The studio behind Rime and The Sexy Brutale faces closure as founders step down and funding is pulled.

Tequila Works, known for games like Rime and The Sexy Brutale, has filed for insolvency due to 'prolonged market conditions.'
Founders Raúl Rubio and Luz Sancho have resigned, with former COO Térence Mosca stepping in as general manager.
The insolvency follows last month's layoffs and the cancellation of an unannounced project.
Tencent, which became a majority shareholder in 2022, withdrew its financial support, exacerbating the studio's financial difficulties.
Remaining employees are expected to continue working despite uncertainties about future salary payments.