The news follows the departure of top execs Thomas Tull, Larry Shapiro and Nicholas Longano from the firm last month, citing the disappointing quality of the publisher’s output as the reason.
In addition, a further 20 job losses were confirmed last week.
Variety states: “Several sources have confirmed for me that Brash Entertainment is ceasing operations as of tomorrow. I understand that the investors who had committed $400 million when Brash launched last year have pulled out, so Brash is simply out of cash.”
The future of its current projects, such as the recently announced movie tie-in Saw, is yet to be revealed.