Hard times have fallen on video game
, which reportedly filed for Chapter 1 bankruptcy
this week. Affiliates of private equity firm Clearlake Capital Group L.P. will acquire THQ's assets for around $60 million, taking control of the company's four studios and any games currently in development. The sale will allow THQ to shed certain legacy obligations and emerge with a strong financial backing of a new owner, the games developer said.
"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."
THQ is trying to shine a positive light on the situation, calling it a "new start" for the company. All of THQ's studios will remain open and all development teams will continue working on their current projects. According to THQ, consumers and retailers should see no changes while the company completes its sale.
"Rest assured that the goal throughout the sale process has been to preserve our teams and our products. So no matter what the outcome in 30 days, as long as we have accomplished this goal, I will be satisfied," Jason Rubin, President of THQ, said in a statement. "Whatever happens, the teams and products look likely to end up together and in good hands. That means you can still pre-order Metro: Last Light, Company of Heroes 2, and South Park: The Stick of Truth. Our teams are still working on those titles as you read this, and all other rumored titles, like the fourth Saints Row, the Homefront sequel, and a lot more are also still in the works."
Shares of THQ plummeted more than 73 percent following news of the bankruptcy. The company's stock in pre-market trading is valued at just $0.36 per share, far below the 52-week high of $9 per share.