Struggling game maker THQ files for bankruptcy

SAN FRANCISCO (AP) - Struggling video game company THQ said on Wednesday that it has filed for bankruptcy protection and is selling its business.

The Agoura Hills, California, company said investment firm Clearlake Capital Group has put in a US$60 million (S$73 million) "stalking horse" bid for its operations, which include four development studios and games in currently in development. The process allows others to come forward and place higher bids.

THQ said it plans to continue running its business as it moves through the sale, keeping studios open and continuing to develop games. It said it has secured US$37.5 million in financing from Wells Fargo and Clearlake, pending court approval.

"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 Mr Brian Farrell, the company's chairman and CEO.