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.