THQ Files for Bankruptcy

THQ_LogoThere were rumors in the air that this was going to happen, and it finally has. Today, THQ announced in a press release that they are filing for Chapter 11 bankruptcy. At the same time, Clearlake Capital Group LLP offered to acquire THQ’s assets via Section 363 under Chapter 11, which will allow other interested parties to file competing bids. The estimated offer made by Clearlake totals around $60 million, which includes $10 million to cover the company’s creditors.

THQ Chairman and CEO, Brian Farrell commented: “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.”

As the bankruptcy and sale proceed, THQ will continue to work on games that they already have production, and the consumer should see little to no change in releases. All of the development studios are going to remain active, and no employees are expected to be let go at this time.

THQ President Jason Rubin posted on Twitter about the games in development that are still on schedule for release, saying “On track for big releases. Busy schedule ahead. @Companyheroes,@MetroVideoGame, @SouthPark #StickofTruth still on schedule.”

Expect to see a fairly quick resolution to this filing, as THQ hopes to have the sale finalized within 30 days.