When the story was most recently abandoned the following things had happened:
A ship cracked apart and plummeted as a result of flaming canines unwillingly travelling at high velocity, our goodly Captain Gladknife had made uneasy acquaintance with a member of the stumbling dead, the Captain and his corpsely counterpart fell to the deck of their attacker's ship; battered, boggled, bewildered, and losing the use of an arm Bad-Teddy took up the arms of this zombie fellow as a weapon and made his way towards a throng of attackers ... this is where we'll continue.
question: do you mean retired as in a really really long hiatus or retired retired?
Retired retired. I'll still post one-offs on my tumblr/deviantart that are video game and other things inspired, though. However, IYS the webcomic is no longer going to be updating. Sorry!