THQ’s financial woes have brought it to the inevitable conclusion: bankruptcy. The troubled video game company released a statement on its website announcing that they have filed for Chapter 11 bankruptcy. This process also entails the sale of many of its assets to Clearlake Capital Group, L.P. for about $60 million USD. Clearlake is a “stalking horse bidder”, which means that other interested parties may enter the bidding if they so choose.
THQ’s normal operations will continue without interruption while the sale of assets is finalized. The company will be delisted from the NASDAQ stock market within the next nine days as a result of the bankruptcy filing.
From the press release:
“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.”