THQ tanks, files for bankruptcy

Written by Russell Co. Posted in Gaming, News

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Published on December 20, 2012 with No Comments

thq

Game developer and publisher THQ has filed for bankruptcy protection and has entered into an asset purchase agreement with private investment firm Clearlake Capital Group. Clearlake will acquire a majority of THQ’s assets which includes four studios and games in development. THQ has said that Clearlake is a “stalking horse bidder”, a bidder chosen from a pool of bidders to make the first bid.

Its foreign operations, including Canada were not included in the bankruptcy filings.

“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 Brian Farrell, Chairman and CEO of THQ.

The company hopes that the sales process will be complete in 30 days, while work will resume normally as it continues to develop its games.

THQ (Toy Head Quarters) was founded in 1990 by former LJN co-founder Jack Friedman. THQ is known for publishing the popular Saints Row series, it’s WWE wrestling games, and the Red Faction series.

This news comes after the company successfully raised over $5 million through the Humble Bundle organization. The THQ Humble Bundle gave consumers the ability to name their price as they purchased several THQ games with the option to spread their money between the company and various charities. The games included were Darksiders, Metro 2033, Red Faction, Company of Heroes, Company of Heroes: Tales of Valor, Company of Heroes: Opposing Fronts, and Saints Rows: The Third where gamers paid an average of $5.76 per bundle.