Factor 5 Inc., the San Rafael-based studio behind Lair, Rogue Squadron, et. al, has closed their doors for good.

In an anouncement today, Achim Moller, the CEO of Factor 5 GmbH in Germany, explained that financial troubles have made it impossible for the US-based Factor 5, Inc. to continue.

“We are sorry to announce the closure of the San Rafael-based Factor 5, Inc. studio,” said the announcement on Factor 5’s homepage, “but the obstacles created by the sudden bankruptcy of Brash Entertainment for the continuation of operations have turned out too great to overcome in the current economic climate.”

Moller continued on to explain that while the closure of the US branch of Factor 5 is unfortunate, their sister studio in Germany won’t be affected by the closure.

“Factor 5 GmbH, which has been creating games since 1988 with its headquarters in Cologne, Germany, is entirely unrelated to Factor 5, Inc. and the circumstances surrounding Factor 5 Inc.’s recent challenges,” he said. “Although we are saddened by Factor 5 Inc.’s situation, our corporation will remain unaffected by these developments and has partnered with both old and new friends in the industry who will reveal our upcoming projects over the next months.”

Factor 5 was founded late in 1987 by five former employess of german developer Rainbow Arts, and released several of their early titles for the Commodore 64, Amiga and Atari ST before relocating part of their company to the states in 1994.

There are titles for both the Nintendo Wii and PlayStation 3 systems currently in development with Factor 5, and the fate of those projects is currently unknown.