let’s be real, no investors are likely to give telltale money so they can pay their employees severance. investors give money to get money back. they will be investing in further business endeavors only, like, for example, launching a nearly-finished sequel in a popular franchise.
we are forced to assume, at this point, that Telltale has no money, and that’s why they fired their entire staff. They have property (IP, games in development) that are currently owned by the company, but they can’t do anything with those things without any more money to pay people to make stuff. They probably hope that revenue from upcoming games will allow them to stay afloat, at least long enough to find a buyer for the company or whatever intellectual property they have, but I don’t think any naturally-generated money (read: money earned through doing business, selling games) will end up going towards fired employees.
If that money comes from anywhere, I’m guessing it will be from the coffers of executives who, for whatever reason, decide to do that on their own. Because guess what: business law is structured to defend executives from exactly this scenario. Generally, if a business has no money, no one is personally responsible for paying owed debts without going to court to prove that individual is liable, and let me tell you as someone who has been refused pay by a defunct employer, that shit takes YEARS, and usually amounts to nothing. LLC stands for “limited liability”, and this is that liability (though it looks like Telltale is a corporation, but I’m pretty sure there is still no personal liability). When you have a case against a business, you have a case against the business, literally. Not a person, not even the founder or current CEO.
So if the business goes under, the executives, no matter their personal wealth, can turn to you and shrug and say, “gosh sorry, wish there was something we could do.” Granted, the proprietor now has a bankruptcy under their belt, but to my knowledge, that only really affects their ability to start new businesses, or start new lines of credit, per @falcomadol’s post.
At any rate, yes, businesses are structured in a way that protects executives first, and yes, that sucks ass, and I suspect that no one will give them the money they need to finish the series if they express any interest in using that money or any revenue from sales to pay fired employees.
anyway please feel free to correct me on any of this. I learned about this stuff through years of research because of my own experience, but I don’t have an MBA or anything