However, Factor 5’s German studio — and headquarters — located in Cologne, Germany, is unaffected by the closure and will continue normal operations.

“If we left, there would have been no hope in F5 staying afloat,” read his post. “We had faith in the projects and the company, so there was no reason to bail just yet.”

The financial crisis caused the company to stop work on one of its titles after cutting employee health care. Baker was apparently told by president Julian Eggebrecht that employees should start looking for other jobs if funding wasnt secured within a week.

However, following reports on his post, Baker deleted the entire blog, claiming it was “easy to misinterpret.” Additinally, he clarified that the halted project wasnt the game being made from Brash.

“The other projects currently under way at Factor 5 are doing great,” he said. “We hadn’t received payment because of the situation with Brash, which is why I said I needed to look elsewhere for work.”

The publisher has reportedly laid off 20 employees and is looking to raise funds by pairing with other companies and by returning some of the licenses it holds, or selling them altogether.

There are several games in danger of being cancelled, including Prison Break, 300, Night at the Museum 2, Clash of the Titans and more.

Brash, upon its formation last year, had raised over $400 million in funding, but not all the money was delivered upfront. In fact, most of the undelivered money has “dried up” in the current credit crisis.