Last week, Acclaim's stock shares plummeted on the news that the company was preparing to file for bankruptcy protection.

Yesterday, the other shoe dropped, as the Glen Cove, NY based company terminated all 600+ of its employees worlwide–without severance or continuation of benefits.

Sources inside the company say that the company will file Chapter 7 bankruptcy documents within the next day or so. Initially, it was thought that the company would opt for the "much safer" Chapter 11 (which would allow it to operate as usual under a restructuring plan). Chapter 7 is a straight-up liquidation style bankruptcy, which means that the company plans to liquidate all of its assets and pay off its major creditors. In exchange, the company would shut down and most of the its debts would be discharged.

The releases of games such as Juiced and The Red Star will no doubt be delayed until an auction process is setup to allow other publishers to acquire the assets and rights to them.

Acclaim has been in rough waters financially for years, but an operating loss of more than $25 million in the previous quarter alone prompted executives to initiate the bankruptcy process.