THQ Files for Chapter 11 Bankruptcy

THQ has been in the news more than once during this month, but unfortunately this time its not something that many gamers will be happy about.

THQ filed for Chapter 11 bankruptcy. On Wednesday, the company signed an “Asset purchase agreement” with Clearlake Capital who will buy a substantial amount of assets from theme. Trading of THQ’s shares also halted with the last check showing it was down 11.6% at $1.22- which has fallen 84% till date.

Just sometime ago, the company partnered with Humble Indie Bundle to sell non-indie PC games via Steam in an last effort of raise cash and keep itself afloat, but also giving an option where the users can donate the money to the charity or to Humble Indie Bundle should they choose to do so.

Clearlake will be serving as a “stalking horse bidder” for THQ’s existing intellectual property assets and its studios. THQ will be selling its property to Clearlake which will eventually sell it via an auction. The total assets that THQ holds is $60 Million including $10 Million given in good faith by THQ’s debtors.

THQ Brian Farrell said the following:

“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. We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible.”

On the bright side, Brian Farrell seems to be keeping a hope that the game studio will still function despite the financial issues that the company faces. He says that it will not affect the games that will launch in the near future and no one will lose their jobs during the holiday season.

Source: Digital Trends