According to a post in Flagship Studios' official web site, recent reports of the company shutting down are inaccurate, but it seems they admit that a majority of its employees were fired (thanks Blue).

In addition, they claim they are still owners Hellgate: London and Mythos IPs. However, they are currently not accepting new Hellgate: London subscriptions.

“It is with deep regret that I must announce that Flagship Studios has laid off most employees. However, the core management and founding team members are still at Flagship,” says Flagship CEO Bill Roper. “The past five years have been an incredible experience for us, but unfortunately, we couldn’t sustain the size of the company any longer.”

No matter what they're saying right now, it's pretty much obvious the development studio is in serious doodoo.