Brash Entertainment To Fold??? News

Following a statement from Brash Entertainment earlier today confirming that the publisher has laid off 20 staff, rumours are now circulating that the majority of titles under the company's label could be getting axed.

This news comes from Variety, which cites industry sources who are alleging that Brash may have stopped paying developers provisionally, while some studios are in consultation with the publisher about the possibility of selling off or returning licenses for game tie-ins.

Brash has made its name as a specialist in film tie-ins having published three licensed titles (Alvin and the Chipmunks, Space Chimps, and Jumper: Griffin's Story) since being founded last year.

Only two games in the publisher's pipeline (Six Flags Fun Park and Saw) have been confirmed as still being in development, leaving a raft of other titles in limbo. These include Tale of Desperaux, Prison Break, Night at the Museum 2, Clash of the Titans, and 300.

A yet to be announced Superman title, which is in development at Factor 5, is also suspected to be in trouble.

The company announced that it had acquired $400 million (£254 million) of funding as a fledgling publisher last year. It has now seemingly become apparent that only some of this sum was immediately at Brash's fingertips, so presumably the rest of it has gone down the Credit Crunch plug hole.

Legendary Pictures' Thomas Tull, a Hollywood Producer who co-founded Brash Entertainment and was involved in shoring up private equity investment from Wall Street, recently resigned from the publisher's board. 

Here's this morning's statement from Brash Entertainment in full:

"Citing the current tough economic landscape, Brash Entertainment has confirmed the company has instituted a strategic cost reduction plan that will see the elimination of over 20 positions across multiple departments.

"Affected by this move will also be the closing of some open positions that the company had planned to fill this fiscal year. Employees affected by this action will receive severance and extended benefits.

"Brash Entertainment will continue to strategically work on its business including the upcoming release of Six Flags Fun Park for the Wii scheduled for this December, and a video game based on the Saw movie franchise for release in 2009."