THQ has filed for Chapter 11 (reorganization) bankruptcy and has entered into an asset purchase agreement with Clearlake Capital Group, a private equity firm. Clearlake is "to acquire substantially all of the assets of THQ's operating business, including THQ's four owned studios and games in development." THQ's stock on the Nasdaq exchange has been halted, with the company expecting to be delisted within nine calendar days.
"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.
THQ hopes to have the sales process completed in 30 days. No layoffs are planned or announced at this time, with employees to be paid normally and work normal schedules.
THQ announced in early November that is was seeking "strategic alternatives" to its dire financial situation. Clearlake has agreed to serve as the "stalking horse bidder," a fancy term for an interested buyer chosen by the company, but there could be other interested buyers.