This announcement comes after months with no updates from the company. Wouters explains in his statement:

Stunning graphics and a rich story in Woolfe: The Red Hood Diaries weren’t enough to keep GRIN Gamestudio afloat.

Despite the game’s intense visual appeal, it received lackluster reviews, with only 61% of users rating the game positively, and a Metacritic score of only 55/100. Wouters speculated that part of this may be due to unrealistic expectations set by changing the game from 2D to 3D, giving it a more open-world feel that led to comparisons with games like Assassin’s Creed, with which, he said, the game had no hope of competing.

Combined with the unexpectedly high cost of making the game 3D, the low scores and disappointing sales meant that GRIN could not recoup their investment.

Kickstarter backers who invested the game are losing out, as well

Though most of the gifts are ready to be shipped, GRIN does not have the money to print the artbooks and DVD cases, nor the funds to cover the postage.

Fans of the game who had hoped for a Volume 2 will obviously be disappointed - for now. Still, there is the hope that another developer may purchase the Woolfe IP, which is officially for sale.

Did you play Woolfe: The Red Hood Diaries? Did it live up to your expectations, or could it have been better? Let us know your thoughts in the comments below.