THQ Files For Bankruptcy, Plans To Sell Assets

Embattled video game publisher THQ announced Wednesday that the company has filed for chapter 11 bankruptcy in the state of Delaware, and that “substantially all” of its assets are to be sold off.

Investment firm Clearlake Capital Group has stepped up with a “stalking horse” offer, putting a minimum price on THQ’s assets at $60 million. THQ says that until the sale is complete, the company will continue to operate as-is with no layoffs, pending court approval.

The company “is asking the Court for a schedule to complete the sale process 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,” said Brian Farrell, Chairman and CEO of THQ.

“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 confirmed that it will continue development on Metro: Last Light, Company of Heroes, South Park: The Stick of Truth, and other projects. If any game has been canceled, THQ hasn’t said.

“We have incredible, creative talent here at THQ,” added THQ president Jason Rubin. “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.”