THQ files for Chapter 11 bankruptcy protection; properties to go up for auction, but no games to be cancelled

THQ Logo

We’ve known for quite some time that THQ, publisher of such hits as Saints Row The Third and Darksiders, was experiencing massive financial issues. Less than a month ago the company partnered with the people behind the Humble Indie Bundle to release an inexpensive collection of older THQ games in what seemed a last-ditch effort to raise some cash. Today the company has filed for Chapter 11 bankruptcy protection and has entered into an agreement with the Clearlake Capital Group to sell off its extant assets.

“To facilitate the sale, THQ and its domestic business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Delaware,” reads THQ’s official investor relations announcement. “The company’s foreign operations, including Canada, are not included in the filings. The company has obtained commitments from Wells Fargo and Clearlake for debtor-in possession (DIP) financing of approximately $37.5 million, subject to Court approval.”

So what’s to become of the games THQ had in development? Assuming everything goes according to the firm’s plans, consumers won’t really notice any true change. “THQ will continue operating its business without interruption during the sale period, subject to Court approval of THQ’s first-day motions,” THQ claims. “All of the company’s studios remain open, and all development teams continue.” Further, THQ has stated that despite this unfortunate financial turn, the company has no plans to lay off its staff, or cancel any projects — at least no projects that the public is aware of anyway.

If you’re not up to date on bankruptcy law, the layman’s version of this situation is as follows: Clearlake Capital Group has agreed to serve as a “stalking horse bidder” for THQ’s existing intellectual property assets and its studios. Effectively, THQ is selling its property to Clearlake which will then sell said property at auction. Clearlake plans to price the entirety of THQ’s assets at $60 million (which includes a $10 million note earmarked as a show of good faith to THQ’s debtors). For its part, THQ seems quite confident that this scheme will allow it to eventually resume normal operations.

“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 THQ CEO Brian Farrell. “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.”

Whether you see Farrell’s words as politically beneficial diplomacy or genuine hope is entirely up to you, but we’re happy to hear that the company’s troubles won’t affect the games it has planned to release in the near future and, more crucially, that no one will be losing their jobs during the holiday season.

Gaming

Ditch the meditation app. 'Katamari Damacy Reroll' is pure gaming zen

Katamari Damacy Reroll brings the magic of the PS2 classic to Nintendo Switch and PC. With updated visuals and the same great, singular loop, Reroll stands the test of time. Katamari Damacy is the ultimate relaxation game.
Business

Chinese court upholds Qualcomm's complaint that Apple infringed on two patents

Apple is following the FTC's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Gaming

Take-Two Interactive takes down another ‘GTA Online’ modder, seeks $150K

Take-Two Interactive and Rockstar Games have filed a lawsuit against the GTA Online modder behind the software named Elusive. The publisher is continuing its crackdown against GTA Online mods.
Gaming

Rockstar adjusts ‘Red Dead Online’ in-game economy in response to complaints

Red Dead Online has been catching flack for its unbalanced in-game economy. Now developer Rockstar has announced adjustments to the game, increasing the amount of cash and the number of gold bars that players earn for various activities.
Mobile

Put down the controller and pick up the best phones for gaming on the go

Which phones are the best if all you want to do is play some mobile games? We've done the hard work and put together a list of the best gaming phones on Android and iOS, so you can keep playing and winning.
Gaming

Need help getting the Sleeper Simulant in 'Destiny 2'? We’ve got you covered

The Sleeper Simulant is one of the coolest new Exotic weapons you can unlock in the Warmind expansion of Destiny 2, but it's an involved process that will take awhile. Here's everything you need to know.
Gaming

Some ‘Fortnite’ players aren’t too happy with the new Infinity Blade weapon

The most recent update for Fortnite added the Infinity Blade melee weapon to battle royale, and some players aren't happy with how much it has changed the game during competitions.
Gaming

Xbox One S vs. PlayStation 4 Slim: Which console is worth your money?

Microsoft's new Xbox One S and Sony's PlayStation 4 "Slim" have bucked the generational gaming console trend. But which of these stopgap systems is worth spending your paycheck on?
Deals

Check out the best Xbox One deals and bundles for December 2018

Microsoft's consoles are just as capable of streaming movies as they are of playing the latest games. Check out our top Xbox One deals and bundles, which include new and upcoming triple-A games like Battlefield V and Fallout 76.
Cars

Best Products of 2018

Our reception desk has so many brown boxes stacked up, it looks like a loading dock. We’re on a first-name basis with the UPS guy. We get new dishwashers more frequently than most people get new shoes. What we’re trying to say is: We…
Deals

The NES Classic is back in stock just in time for the holidays

The NES Classic is back in stock at multiple outlets at its original launch price of $60 in time for Christmas. Retailers offering it online are Walmart, GameStop, Target, and Best Buy -- if you're looking for the perfect holiday gift for…
Gaming

Soulja Boy’s ‘new’ console appears to include stolen Nintendo games

Rapper Soulja Boy recently released his SouljaGame console, and it includes several emulated games that appear to be stolen from companies like Nintendo, SNK, and Capcom. A handheld version is also available.
Computing

Razer’s classic DeathAdder Elite gaming mouse drops to $40 on Amazon

If you're looking to pick up a new gaming mouse for the holidays, Amazon has you covered with this great deal on the classic Razer DeathAdder Elite gaming mouse with customizable buttons, RGB lighting, and a 16,000 DPI optical sensor.
Gaming

Xiaomi’s Gamepad 2.0 turns the Black Shark into a mini Switch

Chinese phone manufacturer Xiaomi has introduced the Gamepad 2.0 for its Black Shark gaming phone that launched earlier this year. The new gamepad is similar to the Switch Joy-Con, with one piece attaching to each side of the phone.