One of the biggest companies in the gaming industry, THQ, has filed for bankruptcy.THQ, the company behind the Saints Row, Darksiders, and WWE video game franchises, is broke. The company announced today they’re filing for Chapter 11 bankruptcy and “entered into an Asset Purchase Agreement with affiliates of Clearlake Capital Group, L.P., to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development.”
In layman’s terms, Clearlake is taking over, and THQ will be delisted from the Nasdaq exchange within nine business days. It doesn’t mean the company’s going away, however; they don’t plan any layoffs or changes in employee pay structure, and all planned releases are still expected to happen.
“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 Brian Farrell, Chairman and CEO of THQ. “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.”
It’s part of a saga that’s been going on for some time for THQ, who announced in November they were going to have to take drastic measures to save the company. THQ‘s stock went from a total value of $35.4 million to $11.9 million this year; their total assets are valued at $204.8 million, but they’re $248.1 million in debt. This news also comes about a month after the company’s Chief Financial Officer quit his job after spending four years there.
The sales process should be finished within 30 days.
Editor’s note: This doesn’t mean THQ is going away. They’ll continue to operate as normal. You can still expect South Park: The Stick of Truth and Company of Heroes 2 to be released, pending unforeseen and unrelated circumstances.