It’s been coming for a while now but THQ has finally given up and filed for Chapter 11 Bankruptcy in the US. This means that the company is still in control but acknowledges that it can no longer serve its obligations to creditors.
THQ says that it has already arranged to sell off four studios and all of its currently-in-development projects to a company called Clearlake Capital. Interestingly (or perhaps not), that investment company also bought out the bubbly bath maker, Jacuzzi. Apparently there’s a deal worth $60 million in place, including a $10 note for creditors.
THQ also states that Clearlake and Wells Fargo have agreed to provide a further £37.5 million of debtor-in-possession (that’s what any company that files under Chapter 11 is known as) financing. I assume that’s so that they can continue working on current projects without any major interruptions.
Chief Executive, Brian Farrell says “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,” which seems to be a pragmatic approach that can see the company rise out of recent troubles with a newfound focus on its most bankable properties.
Jason Rubin, President of THQ, has tweeted the following:
— Jason Rubin (@Jason_Rubin) December 19, 2012
So it seems that the games that are currently in development – Company of Heroes 2, Metro: Last Light and South Park: Stick of Truth will continue to be worked on and it’s expected that the same is true of the next Saints Row instalment.