Update: It appears as though the courts have denied THQ's request to enter Chapter 11 bankruptcy and be sold, in whole, to Clearlake Capital Group. According to Distressed Debt Investing, all parties involved have come to an agreement to auction off THQ assets "titles by title" on January 22nd. What this means for upcoming games like South Park: The Sitck of Truth, and pre-established franchises such as Darksiders, Metro: Last Light and Saints Row, remains to be seen. This could lead to all the aforementioned franchises being dispersed to various publishers around the industry.
We'll be back with more when we know it.
Original Story: It’s a sad day to hear that publisher THQ has filed for Chapter 11 bankruptcy. What this means is that the company and its assets are being picked up by a third party, in this case Clearlake Capital Group LP, so that they can “shed certain legacy obligations and emerge with the strong financial backing of a new owner with substantial experience in software and technology,” according to the press release issued.
The same press release also states that things will be business as usual for the gaming publisher during the sale period; all of their in-house development studios are still operational, and all of the games being developed are, well, still in development. This could change once the sale is finalized, but for now there’s no need to worry if you’re a hardcore THQ fan.
Here’s the official wordage, straight from THQ:
“THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions. All of the company’s studios remain open, and all development teams continue. The company remains confident in its existing pipeline of games. THQ maintains relationships with some of the top independent development studios around the globe. As part of the sale, the company is seeking approval to assume the contracts of these studios, and Clearlake will assume these contracts.”
THQ’s Chairman and CEO Brian Farrell added, “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.
“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.”
This is obviously some depressing news, but hopefully THQ can make it through this transition mostly unscathed. We’ll report more if there are any further significant developments. You can read the official press release here.
Erik Norris is the Gaming Editor for CraveOnline. You can follow him on Twitter @Regular_Erik.