Renowned developer and publisher Starbreeze studios have been stuck in a tough place recently. Overkill’s The Walking Dead, developed by Overkill Software (a subsidiary of Starbreeze) severely underperforming in the sales department didn’t help matters either. As a result, Starbreeze and a handful of subsidiaries have applied for corporate reconstruction at the Stockholm District Court. It was also announced that Bo Andersson would step down as the CEO of the company.

“The decision is based on liquidity shortage and is deemed necessary to give the Company the time needed to negotiate a long-term financial solution and implement operational and organizational changes,” writes the company.

The reconstruction applies to Starbreeze AB and its subsidiaries Starbreeze Publishing, Starbreeze Production, Starbreeze Studios and Enterspace and Enterspace International.

The company has detailed what will happen during this period:

“Within the reconstruction period, pay will be paid to employees in Starbreeze and operations will continue as usual. During the reconstruction period, payment may not be made to suppliers for work or material for the period up to the date of business reconstruction application. However, suppliers will be paid for work performed during the restructuring period,”

Starbreeze studios, established in Sweden in 1998 is responsible for cult hits like The Chronicles of Riddick series and The Darkness.