Dark Energy Digital, the studio behind the critically panned Hydrophobia, is to enter administration within the next ten days, reports GamesIndustry.biz.

Staff are said to have been informed of the decision last week and redundancy notices have already been issued. A source from within the company says staff are concerned about outstanding payments.

Dark Energy Digital was formerly known as Blade Interactive, but shuttered in 2008. Owners Peter and Deborah Jones later reappeared under the new studio title of Dark Energy Digital.

After a troubled development of three and a half years, Hydrophobia was released as a digital game, despite earlier grander plans to publish at retail. The game was given a critical mauling, which led to the release of the "Pure" update, but this didn't change opinions on the game. Later PC and PS3 versions also disappointed.

Administrators will now look to sell the Hydrophobia IP, the Hydro Engine it was built on, the World Championship Snooker IP and a near complete Pool game.