THQ Files For Chapter 11 Bankruptcy

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THQ Files For Chapter 11 Bankruptcy

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The beleaguered publisher has entered into an asset purchase agreement with Clearlake Capital Group.

After a long and ugly struggle against insolvency, THQ announced today that it has entered into an agreement with a "stalking horse bidder," Clearlake Capital Group, to acquire all of its assets, including the four studios it owns and the games it currently has in development. The publisher has voluntarily filed for Chapter 11 bankruptcy protection as part of the effort to "shed certain legacy obligations and emerge with the strong financial backing of a new owner."

"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," THQ Chairman and CEO Brian Farrell said in a statement. "We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition."

As a "stalking horse bidder," Clearlake is offering approximately $60 million for THQ's assets, which includes $10 million to cover the company's creditors, but other interested parties may come forward with competing offers during the sale process. The Section 363 sales process, as explained by Financier Worldwide, allows THQ to establish a minimum bid that other bidders will have to beat. "In exchange for coming forward and negotiating the initial APA with the seller/debtor, the bankruptcy court often grants the stalking horse certain bidding protections, such as expense reimbursement, and break-up fees in the event its bid is exceeded," the site says.

The good news is that THQ will continue to operate, its studios will remain open and all current game development will continue. "Consumers and retailers should see no changes while the company completes a sale," THQ said in a statement. "The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval."

THQ expects the sale to be completed in roughly 30 days.

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I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

I think we all saw this coming.
Still doesn't make it any less terrible.

At least the worst case scenario didn't happen. Good to know I can still look forward to Stick of Truth.

Lucky Godzilla:
I think we all saw this coming.
Still doesn't make it any less terrible.

I feel bad for the employees who are innocent and will get laid off. I don't feel sorry for the executives who thought starting the trend of online passes was a good idea. I honestly feel vindicated about that little injustice.

THQ have got me to actually like them, I can hardly believe it, but I'm enjoying Saints Row 3, I hope everything works out

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

The bundle earned 5 million in total. Obviously, a significant chunk of that went to charity, so I'd guess they pulled somewhere between 1 and 3 million.

Which is nice, but clearly not enough to keep them afloat.

bah why couldn't this happen after stick of truth was released? Then the retailers would put deep discounts on it and I could get it for a song.

Well I'm sure most of us pretty much expected this to happen.

At least it isn't the worst case scenario, and they can continue for the moment. I quite like THQ, and some of their series.

I feel bad for Volition. But they'll be snapped up like a hot proverbial. the guys who made Space Marine and Darksiders? Yeahhhh, not feeling even remotely sorry.

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

OK. Be honest. Did THQ run over your dog? Did they beat you up and take your lunch money?

Every other post I have seen from you has either some sort of anti-THQ commentary, or salt-rubbing. Even when the thread has NOTHING to do with THQ specifically, you shoe-horn it into the conversation. Why? I remember you responding to me the last time with something about shovelware, but I really don't find that to be a sufficient explanation with the fetishistic amount of hate you have for this publisher.

It can't be their library. Saint's Row The Third was one of the most fun sandboxes I've played. Dawn of War 2 has kept me entertained since its release, probably because it requires a strategy beyond clicking fast and Ctrl+A a bunch of Hydralisks. Metro 2033 is one of the best shooters I have played. Company of Heroes is one of the last classic RTS games that isn't aimed toward casuals.

UDraw was a bad idea, we can all agree on that. Companies make stupid decisions. It happens and it is unfortunate when it happens. It sucks that so many good studios are affected. But why the hate?

ResonanceSD:
I feel bad for Volition. But they'll be snapped up like a hot proverbial. the guys who made Space Marine and Darksiders? Yeahhhh, not feeling even remotely sorry.

OK, I don't know about Darksiders, I have not played it yet since I bought it in the bundle. Space Marine, while bland, was not really that bad of a game.

CrossLOPER:

ResonanceSD:
I feel bad for Volition. But they'll be snapped up like a hot proverbial. the guys who made Space Marine and Darksiders? Yeahhhh, not feeling even remotely sorry.

OK, I don't know about Darksiders, I have not played it yet since I bought it in the bundle. Space Marine, while bland, was not really that bad of a game.

Personally Relic Entertainment's list of incredible RTS games more then makes up for the Space Marine misstep. The Homeworld, Dawn of War, and Company of Heroes series have all been excellent.

Well Chapter 11 was probably the best THQ could hope for, hopefully their restructuring goes well. They've made mistakes in the past, but I'll back them before Activision and EA any day.

CrossLOPER:

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

OK. Be honest. Did THQ run over your dog? Did they beat you up and take your lunch money?

As soon as I can get my money back for their shittier games, I'll be much happier.

And you picked the one post where I was talking about their situation, rather than their crap games to complain about my stance towards THQ? Really?

ASan83:
At least the worst case scenario didn't happen. Good to know I can still look forward to Stick of Truth.

We can,huh? Well,that's a relief. Started to panic there for a minute.

UltimatheChosen:

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

The bundle earned 5 million in total. Obviously, a significant chunk of that went to charity, so I'd guess they pulled somewhere between 1 and 3 million.

Which is nice, but clearly not enough to keep them afloat.

$5 million wouldn't have been enough either.

With the budgets for their games (I'm willing to bet $20-$50 each, since that's more or less the standard these days), and other operating expenses, $5 million is a pretty paltry amount of money. To say nothing of the amount they actually earned from the bundle.

ResonanceSD:
I feel bad for Volition. But they'll be snapped up like a hot proverbial. the guys who made Space Marine and Darksiders? Yeahhhh, not feeling even remotely sorry.

Nevermind the guys who made Space Marine also made the Dawn of War series, and that was their first foray into TPS territory.

THEY DESERVE TO BURN.
Oh wait. They also gave us CoH and Dawn of War.

Stalking horse?
...

Yeah, that seems about right...<.<

But sersiously... I hope THQ comes out of this okay... or rather, I hope they last long enough for Metro Last Light to be released... than they can go as far under as they want...<.<

GamerMage:

ASan83:
At least the worst case scenario didn't happen. Good to know I can still look forward to Stick of Truth.

We can,huh? Well,that's a relief. Started to panic there for a minute.

That's a relief. I hope they get a good company buying them, I've liked most of their big titles.

Frostbite3789:

ResonanceSD:
I feel bad for Volition. But they'll be snapped up like a hot proverbial. the guys who made Space Marine and Darksiders? Yeahhhh, not feeling even remotely sorry.

Nevermind the guys who made Space Marine also made the Dawn of War series, and that was their first foray into TPS territory.

THEY DESERVE TO BURN.
Oh wait. They also gave us CoH and Dawn of War.

Yeah, this person seems to have an axe to grind for some reason. I found Space Marine okay, especially for their first go at a game like that, I've played Dawn of War since Day one and just got into Company of Heroes thanks to their bundle and have been enjoying it.

Also, Darksiders isn't that bad, have yet to play the sequel. People ramble about how it's a Zelda/God of War rip off like it's the only game to ever use similar mechanics. After all, no other game then Zelda can have a form of hook shot multi target weapon like its boomerang, because they belong to that series /sarcasm. It was a new IP and had some cool ideas, I hope it sticks around.

As for Space Marine, room for improvement yes, but it was good enough to deserve a sequel that they can make better in my opinion.

ResonanceSD:

CrossLOPER:

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

OK. Be honest. Did THQ run over your dog? Did they beat you up and take your lunch money?

As soon as I can get my money back for their shittier games, I'll be much happier.

And you picked the one post where I was talking about their situation, rather than their crap games to complain about my stance towards THQ? Really?

So you're mad at them because you're a bad consumer?

Frostbite3789:

ResonanceSD:

CrossLOPER:
OK. Be honest. Did THQ run over your dog? Did they beat you up and take your lunch money?

As soon as I can get my money back for their shittier games, I'll be much happier.

And you picked the one post where I was talking about their situation, rather than their crap games to complain about my stance towards THQ? Really?

So you're mad at them because you're a bad consumer?

I was going to say something along those lines. Anyone with an internet connection can do enough research in a few minutes to show whether or not they would like a game. Or they can avoid a day one purchase and wait for release info such as reviews etc.

It has been a long time since I bought a game I didn't like, because there's not a lot of excuse these days. War Z is a prime example, with the little research I did, I found that studio to be dodgy as heck and decided to wait before buying, thanks to that I won't be buying it at all.

Sad to hear, but not entirely unexpected.

I have a feeling there will be a bidding war for the distribution rights to the South Park game.

ResonanceSD:

CrossLOPER:

ResonanceSD:
I wonder how helpful the humble bundle was for THQ. Can't have been that much if this occurred just a week later.

OK. Be honest. Did THQ run over your dog? Did they beat you up and take your lunch money?

As soon as I can get my money back for their shittier games, I'll be much happier.

And you picked the one post where I was talking about their situation, rather than their crap games to complain about my stance towards THQ? Really?

What did you buy that disappointed you so much?

May they have the Emperor's Peace.

Adeptus Astartes, The Book of Faith:
"At battle's end, speak the Liturgy in a clear voice. Respect the bravery of the living. Give the Rite of Passage to the fallen. Honour the battle gear of the dead. To do all this with reverence, even when exhausted by battle and weary from the field, is the duty of a Chaplain. It is his burden and satisfaction."

saintdane05:
May they have the Emperor's Peace.

Adeptus Astartes, The Book of Faith:
"At battle's end, speak the Liturgy in a clear voice. Respect the bravery of the living. Give the Rite of Passage to the fallen. Honour the battle gear of the dead. To do all this with reverence, even when exhausted by battle and weary from the field, is the duty of a Chaplain. It is his burden and satisfaction."

For The Emperor.

and thats what i ment when i said that thq and their "deals" are in the shitter.

people could have donated more than the average 5.95 dollars...

rhizhim:
and thats what i ment when i said that thq and their "deals" are in the shitter.

people could have donated more than the average 5.95 dollars...

But plenty of people who worked for the company or one of it's developers donated in excess of $1000! Surely that makes up for the hundreds of people who gave one dollar to Humble Inc?

ResonanceSD:

rhizhim:
and thats what i ment when i said that thq and their "deals" are in the shitter.

people could have donated more than the average 5.95 dollars...

But plenty of people who worked for the company or one of it's developers donated in excess of $1000! Surely that makes up for the hundreds of people who gave one dollar to Humble Inc?

yes, it can.

two scientists Imadi Thishithup and Drew mon even confirmed it:

image

well at least a good portion goes to charity.
lets hope they dont go too hard on a "you're fired" spree.

The good news is that THQ will continue to operate, its studios will remain open and all current game development will continue.

So South Park: The Stick Of Truth is unaffected.
Souplex is pleased.

At least this gets the debtors off their backs for a while. The future isn't bright, but it is brighter then it could have been.

It's important to point out that it's not gone, which judging by the comments some people think. It is picked up by a bank but it still very much exists. The current "owners" are bought out by with enough to cover the debt, that is after a round of bidding on the companies assets. If someone else is interested in it, they can outbid the bank. The games are still coming out, thank god, and people are as of right now, still employed.

saintdane05:

CrossLOPER:
snip

BLOOD FOR HTE BLOOD GOD~! I FAP FOR SLAANESH!

How dare you invoke the name of the degenerate, your punishment shall be quick and painless, your blood only spill after your death, has to make sure your ecstasy doesn't spoil the offering of your carcass to Khorne.

iniudan:

saintdane05:

CrossLOPER:
snip

BLOOD FOR HTE BLOOD GOD~! I FAP FOR SLAANESH!

How dare you invoke the name of the degenerate, your punishment shall be quick and painless, your blood only spill after your death, has to make sure your ecstasy doesn't spoil the offering of your carcass to Khorne.

Oh, your threats turn me on, big boy. Comon. Right here.

What does this mean for the future of Darksiders? I have no idea if their game is in development, or if it would be in development too long and THQ sill shut down. Hopefully someone will pick up Vigil games by then.

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