Flagship Studios today denied recent stories that is has closed, saying that it is still in business - though it did have to lay off most of its employees.
In a statement, CEO Bill Roper had this to say,
"It is with deep regret that I must announce that Flagship Studios has laid off most employees. However, the core management and founding team members are still at Flagship. The past five years have been an incredible experience for us, but unfortunately, we couldn't sustain the size of the company any longer."
The company also notes that it still owns the rights to Hellgate: London and Mythos, something that is being disputed by Korean partner and investor HanbitSoft.
Because of its current situation, Flagship will no longer bill Hellgate: London players, nor will it take on any new subscribers for the game. No update was offered on the status of Mythos.