We all know what Mad Catz is – this outfit made some fine gaming accessories over the years. The sad thing is that it looks like the end is at hand for the San Diego-based company, despite the fact that it won a lucrative partnership with Harmonix to supply the controllers for Rock Band 4 in 2016. Mad Catz has now just filed for bankruptcy.
The signs were there – Mad Catz laid off around one-third of its staff last year, and just last week, the company was delisted from the New York Stock Exchange because of its “abnormally low trading price.” According to an official statement, the company revealed that it was forced to enter bankruptcy after being informed by its financial advisor that “no viable strategic alternative in respect of a sale of the Company or other corporate sale transaction” was available. There were also no other third parties of financial lenders willing to increase credit limits.
“Regrettably and notwithstanding that for a significant amount of time the Company has been actively pursuing its strategic alternatives, including various near term financing alternatives such as bank financing and equity infusions, as well as potential sales of certain assets of the Company or a sale of the Company in its entirety, the Company has been unable to find a satisfactory solution to its cash liquidity problems,” Mad Catz president and CEO Karen McGinnis said in the same statement.
It looks like there will be no re-organization of the company, as with some instances of bankruptcy. The company’s executives have all walked away from the company, and operations have since stopped totally. What is left will be to liquidate all the company’s remaining assets.
SOURCE: Global News Wire
