Filing for bankruptcy not the end of the company or games, says THQ President

By: Muhammad Qasim Hassan

  |   December 22nd, 2012   |  

News

THQ boss says recent Chapter 11 bankruptcy filing not the end of the company; operations to continue at studios unaffected.

After experiencing financial woes for nearly two years, THQ filed for Chapter 11 bankruptcy after deeming it as the only viable option to keep the ship from sinking deep into the ocean.

While the action has warned warning bells for the fans of Saints Row, Darksiders or WWE, the company’s president Jason Rubin has made it clear that neither THQ nor its games are going anywhere.

He explained that Chapter 11 did not mean the end for the company or its games, but is in fact a new beginning.

Referring to Chapter 11 as a safety net for American companies, the THQ executive pointed out that American Airlines had filed for bankruptcy as well and yet he recently travelled on their flight to visit Volition, the studio that developed Saints Row, earlier this month.

Rubin gave the example of MGM as well. The studio had also filed Chapter 11 a couple of years back and yet not only is it still there, but has released this year’s blockbuster hit ‘Skyfall’ and potential hit ‘The Hobbit.’

The THQ president said that the development team and games are likely to end up in good hands and thus the upcoming titles will arrive as per the schedule, while the development of rumoured titles such as the new Saints Row and a new Homefront game is still going on.

“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,” Rubin added. “Our teams are still working on those titles as you read this, and all other rumoured titles, like the fourth Saints Row, the Homefront sequel, and a lot more are also still in the works.”

Private equity firm Clearlake Capital Group is interested in buying all of THQ’s assets, which include the staff, support staff, the four studios, namely Relic, THQ Montreal, Vigil and Volition, games and source code, and the contracts that it has signed with Crytek, 4A Games, Obsidian, etc.

While the sale process is continuing, the Clearlake is funding THQ to continue working on its existing projects.

According to Rubin, the private equity firm is investing in a new start for THQ.

He did, however, add that even though it looks like Clearlake would eventually buy off the company’s assets, there is still a chance for other investors to make a bid and thus nothing is certain until the deal with the private equity firm is done, which may take more than a month’s time.