78.5 F
San Fernando
Thursday, Aug 11, 2022
-Advertisement-
Array

THQ Files for Bankruptcy, Plans for Sale

Shares in video game developer THQ Inc. plummeted on Wednesday after the Agoura Hills company filed for voluntary bankruptcy protection. THQ shares closed at $0.36 after having closed at $1.38 the previous day for a loss of $1.02 or 74 percent. That is the biggest one big drop in the company’s stock since Nov. 6 when shares decreased by 50 percent on the announcement THQ needed additional financing to release its games. The bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware by the struggling game maker is part of a plan to sell its assets, including four game studios and games in development. The filing caps a year that THQ management would likely want to forget. In January, the company exited the licensed children’s console game business, and in February announced layoffs of up to 240 employees. As financial troubles mounted, THQ made other changes to its game mix, named a new president and chief strategy officer, and split its stock to prevent delisting from the NASDAQ exchange. The latest moves by the company will bring in a new owner for the publicly-traded company. Private equity firm Clearlake Capital Group L.P. has made an offer of $60 million for THQ’s assets although other interested parties may come forward with competing bids, according to a release from THQ. The bankruptcy filing and sale of assets are necessary steps to position THQ for the future, said Chairman and Chief Executive Brian Farrell. “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,” Farrell said in a prepared statement. THQ will not make staffing cuts and employees will continue to their usual schedules and receive paychecks, pending approval of the bankruptcy court, the company said in the release. Clearlake Capital, based in Santa Monica, Calif., invests in nine industry sectors, including technology, communications, media and consumer products. The firm has invested $3 billion since its founding in 2006.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-