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Game developer THQ files for bankruptcy


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Struggling video game publisher THQ announced it has filed for Chapter 11 bankruptcy, but it will continue to operate as it moves forward with an effort to sell its studios and assets.

The publisher of franchises including Saints Row, Red Faction, and Company of Heroes has entered into a "stalking horse bidder" agreement with Clearlake Capital Group. THQ will sell seemingly all its assets and studios, including Austin's Vigil Games, Champaign's Volition, Vancouver's Relic Entertainment, and THQ Montreal Studios.

Despite the announcement, THQ assured stockholders that all its studios remain open, without any planned layoffs. Development on current projects such as Metro: Last Light and Company of Heroes 2 will continue. "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," Chairman and CEO Brian Farrell said in a statement.

Despite some successful games like last year's Saints Row: The Third, THQ has faced nearly continuous financial trouble for years. The company has been shedding studios to stay afloat since 2008, and it recently shifted away from family-friendly licensed titles in the wake of the severe underperformance of the uDraw tablet controller.

THQ's stock was threatened with delisting from the NASDAQ exchange earlier this year due to poor performance, but it narrowly avoided that fate. The company's stock recently got a small shot in the arm from the success of the Humble THQ Bundle, which offered many of the company's legacy titles for a pay-what-you-want price. Due to the bankruptcy filing, however, THQ will be delisted from the NASDAQ stock exchange within nine business days.

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insanedown58

I could care crap-less about Saint Row but I don't know who'll make the WWE Games now. I mean I loved WWE Smackdown HCTP and WWE '12 and '13 even though its covered with bugs. I just don't know who can make these games now

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