THQ Files for Chapter 11 Bankruptcy

While the $5 million that THQ raised through their Humble Bundle is impressive for a “pay what you want” deal, it wasn’t nearly enough to save the dying company that has now filed for Chapter 11 bankruptcy. As they go through the process, they’ll continue to go about their business producing games.

According to the filing by THQ, they’ve entered into an agreement with a bidder of their choosing who’s looking to acquire all of the company’s assets, including the four studios they own – THQ Wireless, THQ Digital Studios Phoenix, Volition Inc., and Vigil Games. THQ has received $37.5 million in financing commitments from Wells Fargo and Clearlake Capital Group.

Among the games THQ has in development are South Park: The Stick of Truth, Company of Heroes 2, Metro: Last Light, Homefront 2, and a new Saints Row title – all games are being developed by different studios. THQ has listed assets worth $204.8 million and debts totaling $248.1 million. The company does not plan to layoff any employees.

via Slash Gear

UPDATE: THQ President Jason Rubin issued an official statement about why they filed Chapter 11 and how it represents “investing in a new start for our company.” Hat tip to @DarthFos on Twitter for the heads up.

The most important thing to understand is that Chapter 11 does not mean the end of the THQ story or the end of the titles you love. Quite the opposite is true, actually.

Chapter 11 is a safety net for U.S. companies. American Airlines is currently in Chapter 11 restructuring, yet I flew back and forth on that airline when I visited Volition two weeks ago. Donald Trump and his companies have been in Chapter 11 four times. You can add to that list household names such as Macy’s, Eddie Bauer, the Chicago Cubs, Chrysler, Delta Airlines, General Motors, the Pittsburgh Penguins, Marvel Studios, and MGM, among many others.

MGM filed Chapter 11 two years ago, and this year it released “Skyfall” and “The Hobbit,” two of the biggest titles of the year. That’s what I mean when I say new start!

Our Chapter 11 process allows for other bidders to make competing offers for THQ. So while we are extremely excited about the Clearlake opportunity, we won’t be able to say that the deal is done for a month or so.