In a sad, but not unheralded move, THQ's financial troubles have finally caused the company to file for bankruptcy.
An announcement was made Wednesday afternoon that THQ would be filing for Chapter 11 bankruptcy. According to the company's release, THQ has entered into a Asset Purchase Agreement with Clearlake Capital Group, L.P. affiliates, who will open bids to acquire all four of THQ's studios and games currently in development. Other companies will be allowed to bid on THQ's assets, the sale of which is expected to be completed within the next thirty 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.”
As a result, THQ will be delisted from NASDAQ within the next week, though the company doesn't expect to reduce its staff, or cease payments to its workforce while undergoing the Chapter 11 process. THQ will also apparently continue development on its current slate of games, including Metro: Last Light and South Park: The Stick of Truth.