Swedish developer GRIN may have seen a fresh round of layoffs and be facing trouble staying afloat.

In May it was rumoured that the Bionic Commando and Terminator: Salvation studio had seen mass layoffs as it set in motion the closure of its Gothenburg and Barcelona offices, and looked to reduce the headcount at its Stockholm headquarters.

These claims have now been backed up by Gamasutra development sources. The site reports that the survival of GRIN’s Stockholm office may also be in doubt, that employees have apparently been told not to show up for work and that the company may be undergoing some kind of bankruptcy procedure.

GRIN media and brand manager Gunnar Johansson added further weight to the rumours when recently approached for an interview, telling us that the company is “actually closed down during the vacation, so there is no one in the office until mid August.” Further requests for comment have yet to be returned.

Meanwhile, Fatshark Games, which is part-owned by GRIN, has just announced the ongoing development of Lead & Gold - Gangs Of The Wild West. The title is being built with GRIN’s Diesel engine for digital distribution on consoles and PC.