Major League Baseball

Schilling's R.I. company faces layoffs

Published May. 22, 2012 1:00 a.m. ET

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A troubled video game developer founded by former Red Sox pitcher Curt Schilling made layoffs at its Rhode Island headquarters.

Gov. Lincoln Chafee declined to say how many jobs were lost at 38 Studios, which is based in Providence, after a meeting with Rhode Island Economic Development officials.

Chafee added, "I believe it was a mix of who made payroll and a number of layoffs."

But Schilling insisted that his company was not looking to taxpayers to help bail it out.

He told myFOXboston.com, "We're not asking the taxpayers. There is so much misinformation out there that I cannot clear it up with a sound bite."

In 2010, Rhode Island gave 38 Studios, which created the "Kingdoms Of Amalur: Reckoning" game, a controversial $75 million loan guarantee. The company has used $50 million.

On May 1, it missed a payment. State leaders are now trying to figure out how to keep the company afloat.

Chafee was critical of the loan at the time that it was made and called the video game industry tough and competitive. He said that if Schilling wants to bring in a "deep-pocketed investor," he was open to that idea.

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