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THQ declares bankruptcy, arranges for new owner

THQ has declared voluntary bankruptcy and announced its intention to sell substantially all of its assets, however the company expects its game development and publishing to continue as normal. THQ announced the financial measures which will allow it to "shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology" in a press release today.

“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 THQ CEO Brian Farrell. “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.”

The package sale will not mean closures or interruptions in work for any of THQ's four studios, Relic Entertainment, Vigil Games, Volition, and THQ Studio Montreal. The publisher doesn't intend to reduce its workforce as a result of the bankruptcy filing, and will seek to maintain its contracts with independent developers throughout the sale.

THQ will sell all of its assets in one purchase, with Clearlake Capital Group L.P. serving as a "stalking horse bidder" with a roughly $60 million total offer. This means other firms will be able to bid on THQ's assets, however Clearlake's initial bid will keep offers high in exchange for fees if another firm ends up purchasing the assets.

Company stocks will be delisted from NASDAQ and the company's creditors will receive payment as part of the deal.

Topics

bankruptcy THQ

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19 comments

  • Shinn - December 23, 2012 7:48 p.m.

    As long as Relic remains intact and working on 40k games, and metro is still in production I'll be happy.
  • Tranquilbez34 - December 19, 2012 7:50 p.m.

    Two of my Favourite game franchises (Saints Row and WWE) are THQ owned games, Getting rid of their kiddie and licenced games was not a great move for them because even though those types of games suck, it helps THQ fund their AAA titles, Ubisoft does it all the time. I hope the company makes it out alive and if not, hopefully their franchises are given to someone who will do right with them.
  • punkduck2064 - December 19, 2012 7:35 p.m.

    This is sad, THQ had some of the best games on Onlive. I really hope they pull through
  • DragonLord23 - December 19, 2012 7:13 p.m.

    I hope they survive or become partnered with someone. Someone should by THQ like when Midway went out.
  • Tjwoods18 - December 19, 2012 6:28 p.m.

    I have low hopes for the new Metro Game.
  • profile0000 - December 19, 2012 4:16 p.m.

    It really feels like we've been watching them die a slow, painful death over the last two and a half years. It's sad, but I think we all knew this was coming.
  • Travia220 - December 19, 2012 4:43 p.m.

    They aren't dead. It's Chapter 11 Bankruptcy. Which basically means they are going to see a lot of restructuring and their new owner will try to fix what is wrong with the company. Does this mean big changes for them? Definitely. Does this mean that THQ is dead? No..
  • profile0000 - December 20, 2012 6:33 p.m.

    I never said they were dead. I said they were dying, which was true. Anyone who's been keeping their eyes on TQHI knew bankruptcy was bound to happen. That being said, Chapter 11 Bankruptcies have a fairly low success rate. Since the Court decides what happens regarding a company during Chapter 11 Bankruptcies, anything can happen when a Chapter 11 fails, including complete liquidation.
  • profile0000 - December 20, 2012 6:34 p.m.

    THQI*
  • RebornKusabi - December 19, 2012 1:51 p.m.

    Honesly, after their ****ing retarded decisions regarding the over-advertising of the crap games Homefront and Red Faction: Armageddon (including having a Sci-Fi channel tie-in) and the utter NON-advertising of the superior parent game Red Faction: Guerrilla (which deserved more sales and exposure than it got) along with utter stupid crap means they kind of deserve this. Sorry. Now if only EA and Activision would follow them out the damn door so that better developers can have a chance to coexist in the same market place and I would be a happy boy.
  • doominatorx6 - December 19, 2012 4:10 p.m.

    I agree. Homefront was a MASSIVE letdown, made worse by the ridiculous amounts of hype they generated for it. The fact they're making a sequel just blows my mind on so many levels. Ditto for RF Armageddon. Guerrilla was a good game; so why'd basically make a sequel the exact same, but cut out all the good stuff? They went from a surprisingly good open-world mayhem simulator to a generic corridor shooter. And the Udraw tablet. And the unholy amounts of pointless DLC for Saints Row 3. And Saints Row 3 in general. Damn, THQ made some dumbass decisions in the last few years.
  • SUCKxITxEZ - December 20, 2012 3:35 a.m.

    I am honostly somewhat glad this happened, as the future of THQ's IP's will most likely end up in better hands because the fool running this company right now has made some dumb decisions the past 5 or so years. No more stupid hardware that has plenty of competition, i mean seriously there were like 10 stupid drawing tablet things being advertised at the same time from different companies.
  • ventanger - December 19, 2012 1:45 p.m.

    Sometimes the best thing to happen to a company is a structured bankruptcy. If only more people understood that about the automotive business...
  • ultimatepunchrod - December 19, 2012 1:29 p.m.

    Well this seems like the best possible outcome considering the circumstances. I'm glad that, as of now, their biggest devs are continuing work and no one's getting laid off!
  • CitizenWolfie - December 19, 2012 12:57 p.m.

    It's sad news but as a fan of the WWE games (pretty much the only THQ games I buy) I'm looking forward to the prospect of someone new taking the helm if they pass on the license. The last few games have been fun but the glitches and bugs are getting progressively worse.
  • BladedFalcon - December 19, 2012 12:24 p.m.

    Sad, but then again, saw it coming for a mile away.
  • FoxdenRacing - December 19, 2012 12:23 p.m.

    That's some shady stuff going on with that bid...you'd think it'd be some sort of fraud to conspire to give a faux bidder a cut of the sale in exchange for driving the price up through bidding with no intent to win.
  • Connor Sheridan - December 19, 2012 1:18 p.m.

    At the moment it seems like Clearlake does intend to win, THQ just wants to have a bidding process in case someone else wants it more. The stalking horse arrangement (really weird name) gives them security while allowing normal bidding to happen.
  • Unoriginal - December 19, 2012 12:20 p.m.

    Aw man, this is really bad news. Hope the future is better for them or at least their IPs.

Showing 1-19 of 19 comments

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