Welsh developer OysterWorld has entered administration with debts of over $2.6 million.

The BBC reports around 50 people have lost their jobs after the studio was placed into administration on Monday 22 August. Employees are said to still be owed wages from part of June and all of July.

The studio was originally founded in London in June 2011, and had worked mostly on hidden object titles and children's games for various platforms, including mobile and Nintendo 3DS.

Friends in high places

The studio had received over $1.8 million in grants from the Welsh government to set up shop in the country and create 60 new jobs.

Despite this financial support however, the company has now fallen into administration. A former senior manager stated that the company's problems started after the government's investment - when private creditors decided to "pull the plug".

The Welsh government was keen to stress that survival rates for companies they support exceed the UK average. It claimed OysterWorld's troubles are an anomaly and not the norm for game studios it has supported.