38 Studios, the video game company founded by former Boston Red Sox pitching start Curt Schilling, has laid off its entire staff of nearly 400 employees, after struggling to make a $1.1 million loan payment to the state of Rhode Island, which largely financed the company.

According to published reports, Jonathan Savage, a special counsel to Rhode Island Gov. Lincoln Chafee, has told reporters the company is seeking private capital that would allow the company to continue operations and complete the commercialization of some of its games.

The state has provided $75 million in various forms of financing to 38 Studios.

This article was also published in New England Tech Wire.

Related links:

38 Studios – official site

Boston Globe – Curt Schilling’s 38 Studios lays off all staff; ‘Tragedy,’ says R.I. Gov. Chafee

Providence Journal – A day after 38 Studios lays off workers, Schilling tweets ‘thank you’ to supporters – In the end, Curt Schilling was only about Curt Schilling [opinion]

Globe and Mail – Curt Schilling’s video game venture strikes out: entire 400-person staff laid off