'The Walking Dead' creator's company knew Telltale Games were struggling but the closure was still a surprise.
Skybound Entertainment - founded by Robert Kirkman - oversees the franchise, and its president Dan Murray has admitted they didn't know just how bad the situation leading to mass layoffs was.
He told Variety: "We are plugged in with our partners, but these are businesses being run and we try not to control their business.
"We knew some of the challenges Telltale was facing, but when the news hits so suddenly everyone was taken off guard."
It was recently revealed that Skybound and Telltale struck a deal to finish episodes three and four of 'The Walking Dead: The Final Season', but the logistics of getting some of the previous developers on board might prove tricky.
Murray added: "It's hard making games. Whenever something like this comes up, our intention is to try and do the right thing, not just by the brand, but by the fans.
"This was our chance to do both. It's also our intention to make sure to do right by the people we were working with.
"This is a business that is made by people, and when things like this happen there is a human cost. We are trying to do what we can to work with the original staff and provide a soft landing."