The rumours kicked off on GiantBomb when they cited sources claiming that Bizarre Creations will be going through a 90-day consultation period, statutory redundancy. The story was subsequently picked up by various forums and news outlets, each providing a different spin on the development.
Activision's followed up with an official comment this evening, stating: "Over the past three years since our purchase of Bizarre Creations, the fundamentals of the racing genre have changed significantly. Although we made a substantial investment in creating a new IP, Blur, it did not find a commercial audience. Bizarre is a very talented team of developers, however, because of the broader economic factors impacting the market, we are exploring our options regarding the future of the studio, including a potential sale of the business."
It's still not clear exactly what's going down at the British developer, but Activision's statement seems to suggest that the studio has not been closed down as original reports suggested. If they're looking to sell the company then we're absolutely certain another publisher will pick them up, Bizarre Creations are a brilliant team. We've enjoyed both Blur and James Bond 007: Blood Stone from the studio this year alone — here's hoping they land on their feet where they belong.
We'll update as soon as we hear more.