THQ Files Chapter 11 Bankruptcy
Posted on Wednesday, December 19 @ 11:42:56 Eastern by Keri_Honea
THQ announced today that they have entered into an Asset Purchase Agreement with affiliates of Clearlake Capital Group, LP to acquire virtually all of THQ's assets of its operating business, including THQ's four development studios (Relic, Volition, Blue Tongue Entertainment, and Juice Games) and games in development. With this acquisition, THQ can "shed" specific legacy obiligations and rise anew with strong financial backing.
As a result of this agreement, THQ has filed for Chapter 11 bankruptcy, which essentially calls for a restructuring of a business, not closing the business down. The bankruptcy includes THQ's US businesses, but none of its foreign operations, including its businesses in Canada.
What does this mean for THQ's daily operations? THQ plans to continue running as scheduled with no interruptions during this transition. All of the company's game studios will stay open, and all teams are to continue working on their games. THQ even hopes that their contracts with independent studios will continue as Clearlake plans to assume these contracts as well.
“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.”
Jason Rubin,the rather recent president of THQ, said, “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.”THQ sounds very optimistic in their press release, and their plan appears to be positive and the right way to go. Hopefully it will work out for everyone involved, including all of THQ's and their studios' employees.
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