Mad Catz Interactive Files For Bankruptcy
Fight-stick manufacturer and Rock Band 4 publisher Mad Catz Interactive has filed for bankruptcy protections under Canada's Bankruptcy and Insolvency Act, with its subsidiary Mad Catz Inc. seeking chapter 7 bankruptcy relief in the United States. All of the company's directors and officers resigned yesterday.
“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," wrote Karen McGinnis, president and CEO. "The Board of Directors and management would like to acknowledge the outstanding efforts of the Company’s employees in support of its business, especially during the time that the Company faced financial difficulties. The Company would also like to thank the vendors and professional service providers who have supported the Company’s efforts during this time.”
Rock Band 4 was a failure for the company, contributing to a $11.6 million loss in the past financial year – down from a nearly $5 million profit the year before. The company was delisted from the New York Stock Exchange last week.
[Source: NASDAQ Newswire]
I was happy to see the return of Rock Band, but it's clear that my enthusiasm put me in the minority. Betting on a rhythm-game renaissance was a bold move, and it's one that had catastrophic results for Mad Catz.