Game publishers THQ announced it has filed for Chapter 11 bankruptcy proceedings, as the company seeks to sell its assets to Clearlake Capital Group, a private investment group. THQ president Jason Rubin claims a sale is the best move for the company, it will protect THQ from going bankrupt and will give the game developer access to ample capital to finish current and future game projects.
The deal, which sees THQ's major assets - studios Relic, THQ Montreal, Vigil and Volition, all intellectual property, oustanding contracts and support staff - offered to Clearlake Capital Group, is the company's last-gasp attempt at staying afloat in the face of product delays and negative cashflow. The investment group is to provide cash for the company to keep operating while the Chapter 11 process - which allows for competing bids - plays out, with THQ's president Jason Rubin spinning the process as a positive for his company.
'Clearlake is even providing the company the money it needs to keep working on the products as the process plays itself out. And importantly, when the purchase is complete, Clearlake has committed to invest additional ample capital to let us finish the games we are making and continue making games going forward,' Rubin explained in a statement to press. 'In short, they are investing in a new start for our company.'