Unconfirmed: THQ Heading into Chapter 11

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Written by BuckGB on March 4th, 2009

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Sources are suggesting that publisher THQ could be in more financial trouble than thought, and Janco Partners analyst Michael Hickey says that he is giving THQ a 50/50 chance of going bankrupt.

While we are sure that THQ will not like the comparison to publisher Midway (who was forced to file for Chapter 11 protection), reports suggest that THQ has mediocre titles currently and on the horizon, and that they are running out of cash.

THQ CEO Brian Farrell has all dismissed all reports suggesting that the company is in trouble and could be forced to file for bankruptcy or is ripe for acquisition. Farrell has said that it is his belief that the latest round of cost cutting by THQ will make the company profitable.

THQ is, as many publishers are right now, in a difficult spot. The company does partner heavily with outside content providers for their titles and they do not produce as many unique THQ-owned franchises as some analysts might like.

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