News Article

THQ Files For Chapter 11 Bankruptcy

Posted by Andy Green

Upcoming games are safe

THQ has been sailing through some stormy seas recently. The developer currently has $16.4 million outstanding on its facility and recently entered into a forbearance agreement with the finance company Wells Fargo Capital Finance.

The waves don’t seem to be easing up for the company as it has today filed for Chapter 11 bankrupcy protection in a U.S. Federal Court in Delaware. THQ says this is to facilitate the sale of the publisher's owned studios and current games in development. The company has entered a purchase agreement with a bidder.

CEO Brian Farrell said in a press release from THQ:

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.

The bankruptcy proceedings won’t put the brakes on any upcoming games in development, including Metro: Last Light and South Park: The Stick of Truth – none of which are on a Nintendo console.

The last game to be released on a Nintendo system was Darksiders II on Wii U, hopefully it won’t be the last release we see from the developer.

What are your thoughts on this news? As ever, let us know in the comments section below.

[via investor.thq.com, polygon.com]

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User Comments (26)

DAaaMan64

#1

DAaaMan64 said:

:( They have some great franchises. Red Faction 1 & Guerrilla are both excellent.

Hopefully they make it through this.

CrazyOtto

#2

CrazyOtto said:

Dang it, I was hoping they'd do Smackdown wrestling game on the Wii U.

There's also rumors that Namco Bandai is going to be buying out Atari.

IsawYoshi

#3

IsawYoshi said:

I am hoping that nintendo will use this opportunity to buy THQ, so tat they could reinforce their number of 1 party games. That would have been awesome, and it would also have saved THQ. A win win situation. I doubt that they will do it though...

C-Olimar

#6

C-Olimar said:

Nintendo, you could probably get de Blob dirt cheap. Please don't let this excellent series die.

Squashie

#7

Squashie said:

Aww, that's a shame! Well, the industry is suffering and it appears to be at THQ's expense!

fortius54

#9

fortius54 said:

As we all assumed, this is the reason Metro last light is not coming to the Wii U. It may not be going anywhere for a while.

SLiM

#10

SLiM said:

My first THQ game I played was WCW vs. NWO: World Tour on N64. I was blown away by how fun it was for a wrestling game. I haven't played any of their newer games but they're certainly talented. Hope they keep the wheels going and in the right direction.

moomoo

#11

moomoo said:

You guys do realize that bankruptcy doesn't equal going out of business, right? This just means that the debtholders have access to THQ's assets for the use of reimbursment.

In other words, this isn't liquidation. We won't be seeing THQ selling their properties to other companies, at least not yet.

Lan

#12

Lan said:

Poor guys. They may publish a lot of licensed crap on consoles but their PC games are quite good

Birdman

#13

Birdman said:

For all the trouble and last-ditch efforts they've been doing these past few months (free copy of Metro 2033 if you Like their Facebook page anyone?), can't say I'm fully surprised. Hopefully that South Park game won't be a final sendoff from them.

WesCash

#14

WesCash said:

Sad news, especially around the holidays. Hopefully things work out for them.

XCWarrior

#15

XCWarrior said:

I'll always remember WWF No Mercy. All they had to do was stick with that control scheme. But you wouldn't go back to it. So I'll miss you, but not a ton. I only have a couple THQ games, though I do kind of want WWE '13 since it has Attitude ERA. Darksiders I + II are a maybe.

SirSmugleaf

#16

SirSmugleaf said:

It will actually be quite sad for me because back in the day, THQ used to publish a fair amount of children's licensed games, which I bought a lot of, so I thought THQ was basically "video games", if that makes sense.

Sure, I haven't bought a THQ game in a while, they were a huge part of my past gaming, even if those memories weren't quite as fond as I would have wished.

Swiket

#18

Swiket said:

They released Metro 2033 for free because they knew they were going under.

Untitled

jhuhn

#20

jhuhn said:

What will be the fate of WWE, Wheel of Fortune & Jeopardy!? I hope a publisher out there can bail them out and make sales again, or take over the company.

SparkOfSpirit

#21

SparkOfSpirit said:

Hopefully AKI/SynSophia can get back to making wrestling games.

That's really the only positive I could muscle out of this. Sad news. :(

SKTTR

#22

SKTTR said:

Japanese companies AKI and ASMIK made the wrestling games, not THQ.
de Blob is from the Dutch company Blue Tongue Entertainment, not THQ.
Darksiders are by Vigil Games, not THQ.

THQ was a publisher of some pretty good titles, but I've never seen a
game developed by them.
If they are are gone, and no one else steps in, we could miss a bunch of good games in the future.
Everyone who wants to support them could get Darksiders II on Wii U.

Dogpigfish

#25

Dogpigfish said:

They've pushed out some garbage in the last couple years; they are really struggling to find a face, no surprises here. Darksiders is good, however.

Dreamcaster-X

#26

Dreamcaster-X said:

They're not going under yet. They're just restructuring for protection from creditors while they get their affairs in order & seek out a buyer. They're still gonna publish the games in production. I have faith that Jason Rubin can turn that ship around.

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