The brief reprieve from a plummeting stock after THQ’s generous Humble Bundle offering wasn’t enough to help the suffering publisher out of its rut. The company announced it has filed for Chapter 11 bankruptcy today.
According to the press release, THQ will “operate its business without interruption,” during its sale to a new owner. Clearlake Capital Group holds the current bid of approximately $60 million for THQ’s assets, four studios, and all of its games in development by way of a “stalking horse bid.” Bankrupt companies use the “stalking horse bid” to prevent low bids by choosing a company from a pool to start with.
For the time being, lenders Wells Fargo and Clearlake Capital Group will finance the company with approximately $37.5 million.
“The sale and filing are necessary next steps to complete THQ’s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ’s deep bench of talent,” said CEO Brian Farrell in a statement.
“We have incredible, creative talent here at THQ,” said president Jason Rubin, “We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”
THQ announced a delay for three of its high profile games in November, including South Park: The Stick of Truth, Company of Heroes 2, and Metro: Last Light.
The company said it has 10 games currently in development for fiscal 2014 and beyond. That lineup includes sequels to Saints Row: The Third, Homefront, and an unannounced game from Turtle Rock Studios.
Source: THQ
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