It shouldn’t come as a surprise that THQ has filed for Chapter 11 bankruptcy protection. After months of struggling, the company will now enter a purchasing agreement with a bidder to acquire “substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development.”
Filing for bankruptcy will allow for an easier transition of owned studios and games that are currently in the works. THQ Wireless, THQ Digital Studios Phoenix, Saints Row developer Volition Inc., and Darksiders creator Vigil Games are specifically mentioned in the announcement.
An affiliate of Clearlake Capital Group, described as a “stalking horse bidder”, has entered into an agreement with THQ.
CEO Brian Farrell said in a statement:
“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. 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.”
THQ president Jason Rubin added:
“We have incredible, creative talent here at THQ. We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”
THQ will not fire staff, and studio development as well as publishing duties will continue “without interruption during the sale period”.