A post on the Flagship Studios Website contradicts reports that Flagship has closed, though they do grant that most of their employees have been laid off. They do say, however, that they are still owners of the IPs for both Hellgate: London and Mythos, but that they are currently not accepting new Hellgate: London subscriptions, nor are they billing current subscribers:

San Francisco, CA (July 14, 2008) -- Flagship Studios has announced today that despite rumors to the contrary, the company is still operating.

“It is with deep regret that I must announce that Flagship Studios has laid off most employees. However, the core management and founding team members are still at Flagship.” said Bill Roper, CEO of Flagship Studios. “The past five years have been an incredible experience for us, but unfortunately, we couldn’t sustain the size of the company any longer.”

Flagship Studios owns the rights to all its technology and IP, including Hellgate: London and Mythos. Due to the current situation, Flagship will not be taking any new subscribers for Hellgate: London, and all current subscriptions will not be billed.

Flagship wishes to extend their heartfelt thanks to those that have supported the company and games over the past five years.