News

THQ files for bankruptcy, but no game cancellations and layoffs expected

Company executives hail "a new start", praises "deep bench of talent"

Debt-ridden THQ has filed for bankruptcy in the US to facilitate the sale of all its assets, studios and games in development to Clearlake Capital Group, L.P., for a possible $60 million. Don't flush your Metro: Last Light receipt down the toilet just yet, however - the company insists that all its games are still in production, and that it will continue to operate "without interruption throughout the sale period", subject to the approval of the U.S. Bankruptcy Court for the District of Delaware.

"All of the company's studios remain open, and all development teams continue," reads a THQ statement sent to Yahoo. "The company remains confident in its existing pipeline of games.

Zoom

"THQ maintains relationships with some of the top independent development studios around the globe," it goes on. "As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts."

THQ chairman and CEO Brian Farrell insists that the bankruptcy filing is necessary to "reposition" the company, which has chalked up massive losses in the past couple of years, and owes millions to creditors. "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," he said.

"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."

Recently inducted THQ president Jason Rubin chimed in. "We have incredible, creative talent here at THQ. 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."

The statement reiterates that "consumers and retailers should see no changes while the company completes a sale. The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval."

What do you make of it?

Comments