One of the games developed by VIS Entertainment

VIS Entertainment, which employs 96 people, called in administrators on Thursday morning.

Its Dundee studio will close with immediate effect, with all 26 staff made redundant, while 28 jobs have gone at its Edinburgh office.

The remainder of staff have been sent home as talks continue to try to salvage the company.

A spokesman for administrators Tenon Recovery said it was unlikely any union would become involved In the redundancy process and workers were more likely to receive some sort of payout.

�10m turnover

The company was set up in 1996 by founder, Chris van der Kuyl, who was named Young Entrepreneur of the Year in 2003, when its turnover reached the �10m mark.

The firm has developed games for the Playstation 2, Xbox and Gamecube consoles. Last May it merged with California-based BAM! Entertainment Inc.

It still has products waiting to be completed, including State of Emergency 2, the sequel to a VIS game which sold more than one million copies worldwide.

VIS made games for the Playstation 2 and other consoles

It is understood these projects will be assessed as a matter of priority and the administrators will look at the financial situation before deciding whether staff should finish them.

The Evil Dead and Powerpuff Girls games were among some of the other best-selling titles created by VIS.

Tenon director, Tom Maclennan, appointed as a joint administrator for VIS, said: "We are carrying out a full assessment of the business and looking to reach agreements that will enable us to complete the work on the games under development.

"I am also in discussion with a number of parties interested in the business."

Drug jobs losses

The town of Grangemouth suffered a jobs blow on Thursday when the chemicals firm Avecia announced the closure of biotechnology centre.

The decision, which will mean the loss of 95 jobs, was taken after drugs, for which the company makes component chemicals, failed trials in America.