IT Media and Tokyo Shoko Research (via MyAnimeList) report that Next Batter’s Circle Co., Ltd. (the owners of Tear Studio) have announced bankruptcy.

For those unfamiliar with our earlier coverage, Tear Studio had seemingly stopped contacting the outside world. Artists had claimed they were unpaid, their official Twitter shut down, and their official website was temporarily shut down.

The reason for this has been revealed as the parent company entering bankruptcy, with 43 million yen in debt (est. $393,000 USD). 8 million yen (est. $73,000 USD) is due to around 50 animators and artists. The company stopped operating on December 13th.

Next Batter’s Circle was founded in 2013. They were focused on assisting other animation studios, but also produced their own under Tear Studio. Fragtime was the company’s major theatrical anime release, premiering on November 22nd of this year. They have also worked on the anime film The Royal Tutor, and anime series Lord of Vermilion: The Crimson King, and Why the Hell are You Here, Teacher!?.

The bankruptcy shall be officially filed before the end of December.

Image: Fragtime OVA Main Trailer.