38 Studios closure remains an economic crisis for Rhode Island

38 Studios closure remains an economic crisis for Rhode Island
Craig Chapple

By Craig Chapple

September 26th 2012 at 10:40AM

New Governor commissioned report recommends creation of agency to oversee broader economic policy

The collapse of 38 Studios remains an economic development crisis for Rhode Island, the state’s Governor has said.

As reported by Reuters, Lincoln Chafee said he was considering making major changes to the state’s economic development system after the closure of the Kingdoms of Amalur studio, which Rhode Island had pledged a tax-payer backed $75million loan to.

A report commissioned by the Governor suggested the creation of a new state office to oversee broader economic policy and development as it was currently the only New England State without one.

"38 Studios was and remains an economic development crisis for the state of Rhode Island," said Chafee

"I will continue to digest the report over the coming weeks as my administration works to put in place the best structure for sustained and long-term business growth."

The move comes as concerns still loom that the state will have to repay bonds used to fund the $75 million loan given to 38 Studios.

Rhode Island has also reportedly struggled throughout the global economic crisis, with unemployment at 10.7 per cent, the second worst in the US.