Providence video game company 38 Studios laid off all its employees yesterday, according to reports. The financial troubles of the company, founded by former Red Sox ace Curt Schilling (at left), became public when it failed to make an annual $1.125 million payment on its $75 million loan guarantee from the state’s Economic Development Corporation on May 1. The apparent collapse of the company could leave taxpayers on the hook for the entire cost of bonds issued to back the loan guarantee, which with interest could total $112.6 million over the life of the loan.
The 2010 loan guarantee was initiated by then Republican Rhode Island Governor Donald Carcieri to lure the company from Maynard, Massachusetts, to Providence after Carcieri had a “chance meeting” (according to the Providence Journal) with Schilling, an outspokenly small government Republican, at a fund-raiser at Schilling’s Medfield, Massachusetts, house in March 2009. It was apparently part of Rhode Island’s corporate welfare program for Republican millionaires.
But a couple weeks ago, Rhode Island Governor Lincoln Chafee and other state officials began holding crisis meetings with 38 Studios leaders after the company missed payment. By May 16, 38 Studios was asking the state for even more money to help it manage its cash crunch. Keith Stokes, the Economic Development Corporation’s executive director since 2010 and the architect of the loan guarantee, was forced to resign on May 16.
On May 17, 38 Studios failed to pay its employee payroll and hand delivered the state a check for $1.1 million, but warned that it did not have the money to cover it. The state returned the check uncashed. But on May 18, the company apparently did come up with the money. By Wednesday though, the company’s CEO and senior vice president of product development had changed their LinkedIn profiles to indicate that they were no longer with the company, the Boston Globe reported. On Thursday, everyone was gone.

Winners were announced at the New England Art Awards Ball in Somerville, Mass., March 1, 2012. Full results 





















The great hand-painted signs on Woody’s Tire Service in Everett, Massachusetts, as photographed by The New England Journal of Aesthetic Research.



















































