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THQ Files for Bankruptcy, Sells Assets

Part of a reorganisation.

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:

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.

Source: WSJ

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15 Comments
  1. Taylor Made
    Member
    Since: Oct 2011

    They should sell darksiders to Sony then give it to Santa Monica, new God of war in the form of the 4 horsemen

    Comment posted on 19/12/2012 at 21:02.
    • Kennykazey
      Member
      Since: Mar 2010

      No, Sony should buy the developer, Vigil, and the IP. To keep them from closing or falling into the hands of Activision or EA.

      Comment posted on 19/12/2012 at 22:46.
      • Amphlett
        Member
        Since: Jul 2009

        Though Sony no doubt do ‘good work in the community’ and donate to charities, I don’t think a deal such as you’re suggesting would make good business sense, even from the point of view of being charitable.

        Comment posted on 20/12/2012 at 08:01.
      • Kennykazey
        Member
        Since: Mar 2010

        It’s just wishful thinking, Amphlett! You and your logic… :-P

        Comment posted on 20/12/2012 at 10:48.
  2. baggyg
    Member
    Since: Apr 2009

    Sad news after what I thought was a great gesture with their humble bundle.

    Comment posted on 19/12/2012 at 21:46.
  3. gazzagb
    Master of speling mitakse
    Since: Feb 2009

    It was inevitable really, at least their upcoming releases aren’t affected.

    Comment posted on 19/12/2012 at 22:45.
  4. Kennykazey
    Member
    Since: Mar 2010

    I always liked THQ after they published Costume Quest and Stacking. Shame to see them fall like this. I wish them the best of luck.

    Comment posted on 19/12/2012 at 22:48.
  5. Awayze
    Member
    Since: Jul 2010

    Can’t think of a decent game by THQ other than Saints Row 2 and 3.

    Comment posted on 20/12/2012 at 03:32.
    • xdarkmagician
      Member
      Since: May 2009

      They’ve had some great games like Destroy All Humans and Red Faction, and some decent ones like WWE wrestling and Darksiders. It seems though most of their success is from the PS2 days, unfortunately they couldn’t continued that success with the PS3. If that was your point I’d have to agree. SR1 and 2 are really their only successful games for this gen.

      Comment posted on 20/12/2012 at 04:04.
      • xdarkmagician
        Member
        Since: May 2009

        I mean SR 2 and 3

        Comment posted on 20/12/2012 at 04:44.
    • Sympozium
      Member
      Since: Aug 2009

      Well its your fault for not thinking of any other “decent” game.

      Comment posted on 20/12/2012 at 12:32.
  6. xdarkmagician
    Member
    Since: May 2009

    So there’s still management at THQ to manage publishing for the games that they no longer make. It be funny if they weren’t sacking the little guys and selling of assets so the management still had a job. Right now I’m betting the main goal at THQ is to sell or fire enough assets so management still can get a bonus for all the good work they did managing the company.

    The THQ situation is a WTF thing in my mind. 6 years ago they were part of the big 3 in publishing and it was believed that they could be getting even stronger. 6 years of poor management and direction later and it’s cheaper to wipe your ass with THQ stock than it is to use the nice quality paper thats quilted. Oh well, I guess that’s business. Maybe now someone will buy the Red Faction franchise and well be able to get our asses back to Mars in a decent FPS re-boot.

    Comment posted on 20/12/2012 at 04:35.
  7. KeRaSh
    Member
    Since: Nov 2009

    Hopefully someone buys the Red Faction franchise. Volition is very busy with the SR franchise. I wouldn’t mind another 3rd person shooter approach like Guerilla (had soooo much fun playing that game) or a return to the FPS genre. If they code it for the PS4 they could easily implement terrain destruction on top of building destruction physics AND include split screen coop…

    Comment posted on 20/12/2012 at 08:10.
    • Sympozium
      Member
      Since: Aug 2009

      Well I agree they should go back to it, the last game was disastrous but it never should have decided the death of the series. The previous president is a eejit.

      Red Faction has big potential on Next gen consoles and PC tech.

      Comment posted on 20/12/2012 at 12:35.
  8. Motalla
    Member
    Since: Dec 2011

    Are the servers shut down now? I would hate to lose mp in saints row the third.

    Comment posted on 20/12/2012 at 10:03.

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