THQ creditors claim hundreds of millions

Microsoft, UFC, Mattel, Codemasters, and Double Fine among long list of parties seeking money from bankrupt publisher.

Numerous individuals and companies alike have come forward claiming THQ owes them hundreds of millions of dollars in the wake of the company's December bankruptcy filing.

Claims registered in the Kurtzman Carson Consultants database (via Polygon), reveal hundreds of parties are seeking money from the publisher for a variety of reasons.

Wal-Mart is seeking $1.6 million from THQ over a supplier agreement, while the Entertainment Software Association wants $190,000 for money owed over booth space reserved for this summer's Electronic Entertainment Expo.

Developers filing claims include Codemasters ($1 million for unpaid game royalties), Double Fine ($595,000 for breach of contract related to Stacking and Costume Quest), and Microsoft ($213,000 for royalty payments related to Xbox 360 peripherals).

Other big-name companies on the list include toy-maker Mattel, which seeks $12.75 million for an unspecified contractual obligation and UFC parent company Zuffa, which claims it is owed $1.9 million for unpaid royalties related to UFC games.

Former THQ executives Brian Farrell ($6.4 million), Jason Rubin ($2 million), and Jason Kay ($2 million) also filed claims against the company. Farrell's claim stems from money owed over his termination "without cause," while Rubin claims THQ was potentially negligent about its financial circumstances when it hired him last year to turn the company around.

Claims continue to be accepted, but no money is expected to be paid until the end of May.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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139 comments
June-GS
June-GS

Yup, the proverbial vultures circlin' the carcass. Wow.

JamesHetfield89
JamesHetfield89

Gamespot should seriously lock comments on financial topics. The disposition is absolutely without merit. When a firm goes bankrupt, creditors are first in line for reimbursement. Any firm, any industry. There is literally nothing to argue about here at all.

naomha1
naomha1

Activision CEO makes 65 million last year. Farrell claims he's owed at least 6.4 million from THQ, even though he was fired. If you believe publishers are "giving back" to the developers that are making them literally billions of dollars a year, you are sadly mistaken. Seems a very huge chunk of the pie is going right into the corporate suits pockets, not the devs that are busting their asses trying to please the gaming market. This is why the digital market is getting so big right now. Digital means no "middle" man, no publisher's agreements if you don't want one. Just make a kick ass game and sell it on Steam. Yeah, you have to give a little kick baack to Steam, but I bet that's a hell of a lot cheaper than dealing with ANY of these powerhouse publishers that are so filled with greed.  Self publishing is the wave of the future kids, and these guys know it. It's only a matter of time before most developers are sick and tired of being treated like cattle and having to succumb to some poser ass corporate guy in a suit telling them what the "gamers" want. Screw them all, I say. Screw them hard. It's sad THQ was even allowed to conduct business as usual without paying their bills. Try that crap anywhere else and they turn the lights off on your ass. 

dliv666
dliv666

No offense but THQ hadn't made a great game in years ...... everything they make always has a significant flaw of some kind. 

BTW What the problem with E3? I don't get it

commando1992
commando1992

...How exactly do they expect to get any money from a bankrupt company?

SteamyPotatoes
SteamyPotatoes

Another reason not to buy an Xbox, this made me laugh "seeking money from bankrupt publisher".

Vodoo
Vodoo

I still can't believe THQ went under. This reminds me of when Acclaim went belly up. Both were medium to large sized publishers that were literally raking in money left & right at the height of their business. It seems like THQ has been around forever. Now we have one less option in the industry for the quirky games that THQ made. 

Whoever was doing the finances at THQ was doing a piss poor job. They were spending $190,000 on an E3 booth when they had no money. Not to mention hiring an executive with no money.


Jd1680a
Jd1680a

Adidas sued THQ for $10.6 million last year for breach on contract for not producing Micoach. That lawsuit is more then likely still pending for a court date.

highlanderjimd
highlanderjimd

fucking greek tragedy, THQ were one of the few decent devs left. Just think of this, one day it will all happen to EA and we shall all dance on their fucking graves.

diabolik_023
diabolik_023

vultures.... FUCK YOU !!! THQ was a good company , you should help not fest on it's corps.

demondogx
demondogx

This proofs again that ceo's are the scum of the earth

They run companys into the ground, cost good ppl their jobs, and then they want millions of dollars from the same fucking company they ran into the ground

God, id be religious just if i knew those fuckers would burn in hell.

Lamesy
Lamesy

*Assuming* each claim is true, I would support all of them as fair (even Walmart, evil no class bastards) EXCEPT the ESA claim. Seriously, they want money for a "reserved space" that nobody's going to use? Why didn't they resell the space back in Dec? 

Oh wait, because E3 participants are dropping like flies anyway. That space is worth nothing and they know it.

Shielder7
Shielder7

Executives wanting money for screwing up lol American logic.


I was bad at my job and am partly responsible for the company going under give me 6 Million.

BlackBaldwin
BlackBaldwin

Its easy to put your name on a list of others claiming they owe you something or another.  I find governments worse then companies are with this notion some things will never change...

petez34
petez34

The vultures want to pick this carcasse bare.

PacoTaco
PacoTaco

Damn you THQ.  Damn you and your horrible decisions.  We could have more Dawn of War.  We could have more Darksiders, more Homeworld, more Saints Row, more CoH...instead you blew all your money (and wasted it on crap like Homefront).  Now we'll still see many of these games but without your logo on the box.  

Fail.

Ten_Tigers
Ten_Tigers

I love how very few people here seem to understand how this works. THQ has been dissolved. Whatever amounts came from the sales have been dispensed. There is nobody to "go after." When you make an investment you are making a gamble. These companies lost.

Had the investors listened to gamers instead of ivy league diaper bags they would have known what a horrible company THQ had become and they were losing customer support across the board. Serves them ALL right for fucking up our beloved hobby.

SadPSPAddict
SadPSPAddict

It's a shame for all involved, but if they signed the contracts......

tionmedon
tionmedon

this is what happen`s when u rent games instead buying them................

91210user
91210user

One company, fine, if one company harass THQ, then they're stupid, but you have this company that has over half a dozen companies harassing them for money! THQ has a criminal record for this. If you ever worked for THQ, then you are going to get someone coming to you!

Zerabp
Zerabp

THQ signed legally binding contracts with all of these groups, and people, yet somehow the majority of people here call Walmart or Microsoft vultures etc. So much for personal responsibility...

Ravenlore_basic
Ravenlore_basic

"and Microsoft ($213,000 for royalty payments related to Xbox 360 peripherals)."  ... Oh THAT'S right Microsoft console is PROPRIETARY!!!!  HDD, and PERIPHERALS!!!!!!!!!

I wonder why they even did such a thing Sony's uses USB and Blutooth any company can make peripherals for LESS!!! because there is NO royalty fee!!!

BUT Sony loses out on more money just like not charging for PSN like LIVE, or making their HDD proprietary also like Microsoft!!!!   

jeremy-
jeremy-

If these executives get money before the real creditors then the system is broken. They crashed the plane into the ground, why the hell should they get money before the legitimate creditors.

JimmeyBurrows
JimmeyBurrows

I'm sure they're going to get a hell of a lot of money out of a company shutting down due to no money... mmm...

ForceSkin
ForceSkin

@JamesHetfield89 So true, there's some real garbage being spouted in these comments. When you are talking about corporations seeking money there is little room for the sort of emotional arguments here. Hate the game not the playa

Elann2008
Elann2008

@naomha1 

Agreed.  The music industry should be the same way.  There are some artists that took the self-publishing route and were successful.  Of course, the big record companies and game publishers don't want this to happen and they'll do everything in their power to keep this a hidden secret.

silvergol
silvergol

@naomha1 IF More People thought like you, We would have the best games ever made!.

And EA Would be dead! :)

Kolo32
Kolo32

@dliv666 THQ didn't make games. They published them. Your opinion on their game quality not withstanding quite a few of their games were critical and financial successes that many people enjoyed including the Darksiders series. E3 wants money for a booth THQ reserved prior to filing bankruptcy even if that space has probably been bought and filled as of now.

Doomerang
Doomerang

@commando1992 Most likely a combination of the money from the recent auctions plus some sort of insurance. 

ShimmeringSword
ShimmeringSword

@SteamyPotatoes Uh, if someone owed you money, would you not want that money? The bankruptcy is causing a massive liquidation of THQ assets, aka "there is money to be had". It's now or never for all parties involved to get what they're owed. Microsoft isn't where they are today because they were loose with money.

Doomerang
Doomerang

@diabolik_023 How are they vultures if they're asking for money owed? You think a developer like Codemasters, who worked on games for THQ, is not owed the money they deserve for making the game? It's the same as working in a store for several weeks but never getting paid, then people scream at YOU for being a "vulture". 

MegaPyroFlame
MegaPyroFlame

@demondogx Chances are, they might if they're behaving like that.  Still, not all CEOs are evil; I work directly under the owner of where I work, and he's a fantastic guy to be around.  And most CEOs want their companies to succeed to see the cash flow continue to roll in, not run it into the ground for one large lump sum that can be taxed into oblivion.

MurderMode
MurderMode

@Shielder7 I was reading through the claims and it blew my mind that they seemed to come from legit sources and were more modest than I expected them to be.... and then I got to "that" part of the article. What a sad joke

stev69
stev69

@BlackBaldwin Its capitalism at is finest, whoever can cut the others throat first gets another ivory back scratcher while the others hit the unemployment line.

stev69
stev69

@PacoTaco The only good thing to come out of this was at least Relic went to a fairly decent home.

Zerabp
Zerabp

@Ten_Tigers Uh No Whatever is made from the sales will be decided how to be dispensed among these and any other claimants.

AckiBinLacki
AckiBinLacki

@tionmedon yeeeeah, I was already wondering why THQ games were the only ones to rent out there...

Gen007
Gen007

@tionmedon Not true. THQ made a ton of bad decisions that got them here. Used games were the least of their problems.

booty56
booty56

@Zerabp You got to admit Walmart is a vulture on this one

stev69
stev69

@jeremy- Kay and Rubin are looking for about 2mil a piece, not bad for about six months work and the fact they failed to save the company a purpose for which they were hired. 

Mind you the company was floating belly up in the toilet bowl before they arrived. Still people will draw their own conclusions. 

Uri-Z
Uri-Z

@thewhitefox2001 How the hell did that happen? WWE gamesales and pre-orders were doing better than ever.. 

stev69
stev69

@JimmeyBurrows The companies assets were sold off to pay the creditors, they will get their money or the majority of it.

Zerabp
Zerabp

@booty56@ZerabpBy all means please explain how? Did THQ promise to provide a certain amount of product in exchange for guaranteed space on the shelves? Yes they did. Did they provide that product no they didn't. Yet Walmart due to their agreement had to leave that space on the shelves empty as per the agreement. Do you know how much even a little bit of shelf space is worth at Walmart? Because all they are asking for is what the contract entails they could be asking for potential sales loss as well instead they are asking for the amount to be paid if the agreement is not met. These numbers aren't coming from nowhere they are listed in the contracts and agreements THQ made with the companies and individuals involved. How is asking for what was agreed to being a vulture at all. As for most peoples attitudes in general towards Walmart see https://www.youtube.com/watch?v=W92gM_NMAbk

Zerabp
Zerabp

@stev69 @Zerabp Try Von Mises for an accurate portrayal of capitalism. You learned from a poor teacher if you think what you typed has any relation to capitalism or the principles those who practice it abide by.

stev69
stev69

@Zerabp Nick Leeson taught me everything I know, nice guy once you get to know him a shining example to us all. Just don't ask him how to invest your hedge fund you will be there all night.