THQ files for bankruptcy

Struggling publisher files for Chapter 11 bankruptcy and has entered into asset purchase agreement with bidder to sell nearly all of company's assets, including four wholly-owned studios and games.

Beleaguered Saints Row publisher THQ has filed for Chapter 11 bankruptcy, the company announced today. The company has entered into an asset purchase agreement with a bidder to acquire "substantially all of the assets of THQ's operating business." This includes THQ's four wholly-owned studios and games in development.

"The sale will allow THQ to shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology," the company said in a statement.

THQ's day-to-day operations will not be affected during the sale period, the company said. Every THQ studio remains open and development on all projects is unaffected. No layoffs are expected to be a result of the filing. Employees will continue to work on their usual schedules and will receive their previously agreed upon compensation and benefits.

THQ's international operations, including those in Canada, are not included in the filings. Additionally, the company said it has obtained about $37.5 million in financing commitments from lenders Clearlake and Wells Fargo. These investments are subject to court approval.

"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 THQ CEO Brian Farrell in a statement. "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."

Clearlake estimates THQ's assets are worth approximately $60 million, which includes a new $10 million note for the benefit of THQ's creditors. THQ expects to complete to sale process in the next 30 days.

"We have incredible, creative talent here at THQ," new THQ president Jason Rubin said. "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 has a range of games in development. These include Saints Row 4, Homefront 2, Metro: Last Light, South Park: The Stick of Truth, Company of Heroes 2, and an unannounced project from former Assassin's Creed developer Patrice Désilets at the company's Montreal studio.

THQ stock will be delisted from NASDAQ in nine days.

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eddienoteddy

Eddie Makuch

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

okay lets all stop whining for a bit and take a look at some of  the games thq was responsible for publishing


50 Cent: BLood on the sand

all star cheer squad

are you smarter than a fifth grader

avatar: the last airbender

barbie: jet set and style

big mutha truckers

bratz

cars

costume quest

darksiders

destroy all humans 

evil dead redemption 

fairly odd parents

fifa 2000 mls 

finding nemo

home alone

hot wheels

james bond jr. 

kung fu panda 2

mx vs. atv

marvel super heroes 

megamind 

metro 2033

power rangers 


blah blah blah blah essentially this was a company that accidentally bumped into a few good games other than that the sole reason for there existence was money and the easiest possible way to get it. There is nothing to mourn over here, not even really worth thinking about considering that the good franchises with talented developers will get picked up by someone who actually gives a shit about gaming. if something like this happened to rockstar, rocksteady, polyphony, or naughty dog just to name a few, that would be something to mourn over. THQ  barely deserves the half ass piece i've just written about them. 

Hreath
Hreath

No more darksiders......

BH14
BH14

THQ made a great game........ trailer for Homefront.

3D3
3D3

Pretty sad, I can already see EA drooling for WWE.

ApocaLeepse
ApocaLeepse

Hopefully EA won't end up buying them. I shudder to think what would become of great series such as Dawn of War, Metro, Saint's Row and Darksiders if they did. Probably half-assed watered down generic action games, if any of EA's latest sequels are anything to go by.

qioden
qioden

i just hope whatever Dawn of War game they have in the making is not going to be affected...

mechmaster525
mechmaster525

I really hope THQ doesn't go under. I really want Metro: Last Light and Homefront 2 to come out and I would love to see sequals to those to games as well. If THQ goes under I hope whoever buys the assests specifically buys those two, but I really hope they don't go under in general. To many Nickelodian, Wrestling, and crappy movie tie in games. I hope this is a lesson to THQ and other publishers. Activision better watch out with their crappy movie tie ins.

digi-demon
digi-demon

THQ - too many yearlys - and way too many Wrestling and MMA titles.

Saints Row 3 was a good title and worth publishing though.  

Bangerman15
Bangerman15

well im definitely gonna be supporting them next year most likely by getting last light and south park.  Idk about homefront 2 whenever that comes out as I never played the first.  Saints row 4 maybe.. it's kinda weird I kinda like saints row, but not GTA lol surprisingly :o

IceJester45
IceJester45

Sad. THQ is my favorite major publisher. I hope they emerge from Chapter 11 protection stronger.

GunBladeHero
GunBladeHero

This also explains the THQ publisher sale on Xbox Live.

OJ_the_LION
OJ_the_LION

I hope THQ makes it through this. I'm not as big a fan of theirs as I am of, say, Rockstar or Valve, but they produce some good games and aren't as blatantly exploitative of the consumer as EA or Activision. They're not guilt free either (look at the amount of shovelware DLC for SR3) but I hope this is the beginning of a good turnaround for them.

xtraflossy
xtraflossy

I only like a few of THQ's offerings, but they have been around so long and more recently been struggling.  It's kind of like watching a wild animal escape being eaten.  

 

I can't help but rout for little fella 

Assimilat0r
Assimilat0r

10 more frenchies gonna be ruined by Activision or EA. The end of story !

wolf503
wolf503

Please let R* buy them and not EA or activision >.>

Mega_Loser
Mega_Loser

they use the system's tricks fully, i see. free market rules, for the win.

blakeney
blakeney

People really do need to learn to actualy read MORE then just the headline!!!

 

Im mainly talking bout the bit where it says "THQ's day-to-day operations will not be affected during the sale period, the company said. Every THQ studio remains open and development on all projects is unaffected. No layoffs are expected to be a result of the filing" .....................

Noorida
Noorida

there goes my dreams about darksiders 3,4 and 5.... :'(

NoDzombie
NoDzombie

this is sad news THQ is probably my favourite publisher out there

 

all the games they have in development look pretty awesome to, its sad they have run out of money before getting the chance to release them

 

and if Relic ends up at EA and im forced to buy Company of Heroes 2 from Origin...............

MVan86
MVan86

So much for Darksiders... WWE will just find someone else to make their games for them.

Dessicator
Dessicator

Shit. Well I guess now we have to worry about who will ruin or bury their franchises; EA or Activision

Falru
Falru

"No layoffs are expected to be a result of the filing. Employees will continue to work on their usual schedules and will receive their previously agreed upon compensation and benefits."

 

Well at least that's good news, if it's true.

WillyChong
WillyChong

THQ, one great company get to filed bankrupcy while the stinking Activision an EA still sit their fat ass on their throne!?!? FUCK!

501stormtrooper
501stormtrooper

Wait, what? I thought that THQ was still going strong, with Saints Row and whatnot. Too bad, I guess. Soon enough, only the big companies are going to remain.

WillyChong
WillyChong

WHAT?!? Then what is going to happen to Company of Heroes 2!?!? Don't let it die!!! NOOOOOOOOOOOOooooooooooooooooooooooOOOOOOOOOOOOOOOooooooooooooooo

hekifier
hekifier

I didn't even know they were still around!

ZeRo2545
ZeRo2545

The old THQ was great, but ever since they piled a million DLC into Saints Row 3 to try and milk customers to the max, I've disliked them and have not purchased anything else from them. I hope other publishers take note.

BisnessPirate
BisnessPirate

Please valve don't let them be bought by EA or ActivisionBlizzard Pretty please with sugar on top?

StaticPenguin
StaticPenguin

That's sad to hear. THQ is a good company, they just made some poor moves. Sucks to see them going this way.

DarthLod
DarthLod

Now if only this would happen to EA....

mstrchf12
mstrchf12

RIP THQ...you were a great publisher.

GH05T-666
GH05T-666

u have a good past THQ but ur games have been very bad lately thats why this has happen to you!

tannertehpianis
tannertehpianis

Even though the term 'bankruptcy' has an extremely negative connotation, I'm very hopeful for the future of THQ. They've secured financial support for current and future projects without having to lay off any employees or compromise the integrity of their company.

Keaze_
Keaze_

Aw.  I paid for Darksiders 2 for nothing.  Leads of Vigil team left, and THQ is bankrupt.

amcdc79
amcdc79

With Eurocom Entertainment Software going down last week, and now the Publisher (THQ)having issues, my hope for a sequel to "Sphinx and The Cursed Mummy" will Never happen. Sad, I really enjoyed that game.

starduke
starduke

Hmm, this could be interesting...

HappyBB
HappyBB

Did THQ not get any money from the previous Humble Bundle sales?  Well, it seems they are fine after all.

WingChopMasta
WingChopMasta

Stuff like this is starting to get scary. THQ is not some small company. They produce some of the best games every year and are still in trouble. It's not this "economy" like people seem to throw around, record profits have been claimed by more than enough sources from every industry. Keep pirating those games peeps this is just the start. 

Takeno456
Takeno456

Well hopefully they emerge alive. We will see.

Trickymaster
Trickymaster

There was this guy a month ago who said that there will be at least one major third party publisher going bankrupt. That guy was right. Goodbye, THQ.

Jarten
Jarten

What happened to all the money they just got from the Humble Bundle? Or did they not really get much of any of it?

Taasi23
Taasi23

Well, this just sucks. I mean... damn!

 

THQ, I owe you so much, and hope you manage to pull through.

BlendThree
BlendThree

It's frightening when you hear leaders of the industry succumbing to the this troubled economy.  Hopefully they'll use the protection of filing to regroup strong.

_Silent_Jay_
_Silent_Jay_

As a point of reference, Marvel Comics filed for Chapter 11 in 1996, and they came out of it stronger than ever.  Also, Chapter 11 is bankruptcy protection, not a cessation of business.  It filed to stop predatory creditors from killing the company.