Mad Catz Files For Chapter Eleven Bankruptcy Due To Poor Sales
For years, Mad Catz was one of the biggest names in gaming peripherals supplying everything from controllers to memory cards, but the company’s time in the sun is at an end as they’ve officially filed for chapter 11 bankruptcy.
Unlike chapter 7 bankruptcy, chapter 11 means that the company has no plans to reorganize and is, in effect, going permanently out of business. Mad Catz’s executives have resigned and they have ceased all operations. Karen McGinnis, President and Chief Executive Officer released a statement saying that, despite their best efforts, the company had failed to solve their financial problems.
For a long time now they’ve been trying out strategic alternatives to ease theIrene financial issues. These included financing options like from the bank or in terms equity infusions, and they even played around with the idea of selling certain assets or the company as a whole – none of which would have eased their cash liquidity problems.
Part of Mad Catz’s failure to successfully reorganize stems from the poor sales of Rock Band 4. The company had managed to secure a seemingly lucrative deal to provide official controllers for the game, but unfortunately for them that gamble did not pay off. For a variety of reasons, Rock Band 4 simply did not do as well as expected and Mad Catz went down with it.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.