Spanish games developer Tequila Works has filed for insolvency. 

In a statement to GI.biz, the studio's general manager Térence Mosca said that "market conditions" have meant that the company has to go under. That being said, the GM said that he is "proud" of what Tequila Works has accomplished. 

Mosca previously was chief operating officer at the studio but has since moved to being its general manager as the developer's founders have departed on the back of the insolvency. 

"Since its founding in 2009, Tequila Works' game-development philosophy has always focused on 'creating things with gusto'," Mosca wrote.

"We are doing everything we can to provide support and guidance to our teams during this difficult time."

Tequila is known for making games such as Rime and Gylt, as well as publishing The Sexy Brutale. The studio made layoffs in October of this year, almost 18 months after it had attracted massive investment from Chinese games firm Tencent.