Gov. Chafee Finds Out About "38 Studios" Layoffs from Reporters - ABC6 - Providence, RI and New Bedford, MA News, Weather

Gov. Chafee Finds Out About "38 Studios" Layoffs from Reporters

Governor Chafee, who has voiced his frustrations with the lack of communication from Curt Schilling and others at 38 Studios, had no idea the company would shut down today.

The layoffs caught him by surprise.

The end of financially troubled 38 Studios was circulated by the company's employees and eventually into the media's hands at least an hour before Governor Chafee's scheduled afternoon news conference.

But it was clear that no one from 38 Studios, not elusive owner Curt Schilling, nor anyone else, told the Governor and his staff:

John Savage, Governor's Advisor says, "In my conversations today, there were no discussions of layoffs."

Mark Curtis, says: "How come you guys don't know the layoffs have happened, but we know?"

Gov. Lincoln Chafee says, "Well I'll take that. There's the crux of the communication difficulties we've been having with 38 studios."

The collapse of the video game company likely means that Rhode Island taxpayers are stuck with the 75 million dollar bill from the failed company's state backed loan guarantee.

The whole deal was approved by the E-D-C, the state's Economic Development Company.

The original pool for business loans was approved by the 112-member Rhode Island General Assembly. Only one member voted no and now Bob Watson can say," I told you so"

State Rep. Bob Watson says, "Well I regret that I was proven right. It was a potential scandal waiting to happen. It has turned out to be as such. And now, I am concern that we are losing the jobs that people did hope we would have realized, and that tax revenue that would have come into our state."

Watson says the state could take legal action, trying to get back some of its money:

The layoffs at 38 Studios are not the only casualties of this economic meltdown. Three members of the Rhode Island Economic Development Corporation have announced they will not be returning to the Board.