THQ has filed for Chapter 11 bankruptcy

It’s the headline that seemed all too inevitable

THQ has entered into an Asset Purchase Agreement with stalking-horse bidder Clearlake Capital Group “to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development,” it was announced today in a press release. The publisher has filed for Chapter 11 bankruptcy in Delaware.

Subject to Court approval, the company will continue day-to-day business operations as usual during the sale period. “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 chairman and 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.”

President Jason Rubin commented that “We have incredible, creative talent here at THQ. We look forward to partnering with experienced investors for a new start as we will continue to use our intellectual property assets to develop high-quality core games, create new franchise titles, and drive demand through both traditional and digital channels.”

With Clearlake starting the bidding process, THQ is asking the Court “for a schedule to complete the sale process in about 30 days. The publisher “does not intend to reduce its workforce as a result of the filing.”