R.I. Gov.: Schilling Company Again In Violation

Gov. Lincoln Chafee says former Red Sox pitcher Curt Schilling's video gaming company is again in violation of a loan guarantee agreement with the state after it failed to notify state officials of mass layoffs.

Schilling's 38 Studios laid off its entire workforce Thursday after missing its last payroll and defaulting on a $1.1 million payment to the state Economic Development Corp. It later made the payment.

The company was lured to Rhode Island from Massachusetts in 2010 after the EDC approved a $75 million loan guarantee.

Under federal law, employers who have at least 100 employees and plan to shed at least 50 jobs are required to give a 60-day notice to workers and state unemployment officials.

The EDC was in disarray Friday after its executive director and board vice chair resigned.


This program aired on May 25, 2012. The audio for this program is not available.


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