THQ is filing for bankruptcy

THQ is filing for bankruptcy

Today, THQ announced that it’s filing for chapter 11 bankruptcy. This arrives in tow of THQ President Jason Rubin’s celebratory tweet claiming that Saint’s Row: The Third met a $5.5 million sales mark before the release of the humble bundle. The company will be selling off four owned studios and games in development to a private investment firm named Clearlake Capital Group, L.P. as part of a purchasing agreement. According to their press release, THQ’s foreign operations (such as those in Canada) will not be included in the bankruptcy filings.

As per chapter 11 bankruptcy, the company will continue its usual business schedule through the sale period. Commitments from Wells Fargo as well as Clearlake Capital Group, L.P. allow THQ to temporarily remain in possession of approximately $37.5 million worth of assets. THQ’s court approvals specifically state that its studios may remain open and game developers can continue to work on upcoming titles; however, after the sale period is complete, THQ’s studio contracts will be Clearlake’s.

The WWE 13 publisher seeks to gain a stronger financial backing from its purchasing agreement with Clearlake. According to Chairman and CEO of THQ Brian Ferrell, the company is still believes in the games it has to offer. “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 Ferrell in a press release.

As of now, THQ employees continue to work their usual schedules for normal benefits and pay as planned. The company is currently requesting a 30 day schedule to complete the sale process.

Source: http://investor.thq.com/phoenix.zhtml?c=96376&p=irol-newsArticle&ID=1768687&highlight


Article from Gamersyndrome.com

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