THQ Files for Chapter 11, Plans To Be AcquiredOriginally published December 19, 2012 at 3:01 p.m., updated December 19, 2012 at 12:10 p.m.
Agoura Hills video game publisher THQ Inc. filed for Chapter 11 bankruptcy Wednesday as part of an acquisition.
The company’s assets, including its four owned studios and games currently in development, will be acquired by private equity firm Clearlake Capital Group LP in an approximately $60 million deal, which includes a $10 million note for the company’s creditors. The sale should be completed in about 30 days.
“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,” Brian Farrell, THQ’s chief executive and chairman, said in a statement.
The bankruptcy comes about a month after THQ announced that it was seeking financing options and that Chief Financial Officer Paul Pucino had resigned.
Over the last year, the beleaguered publisher, known for its “Saints Row” and World Wrestling Entertainment-licensed games, had discarded its children’s gaming division, laid off staff and closed studios in an effort to cut costs.
THQ will remain in operation throughout the sale and does not expect to cut staff as part of the bankruptcy.
Trading of THQ’s shares on the Nasdaq has been halted. The shares were last down 12 percent to $1.22.