Following a recent string of bad luck, including a change of ownership and layoffs, Midway Games has announced that it is filing for Chapter 11 bankruptcy.
By Andrew Webster | Last updated February 12, 2009 12:45
Things just keep getting worse for Midway. Not long after some massive layoffs and being sold for a shocking $100,000, the publisher has filed for Chapter 11 bankruptcy protection. While this may seem like a bad thing on the surface, Midway is hoping that filing for bankruptcy will allow it to sort out its operations in order to get back on track.
"This was a difficult but necessary decision,” President and CEO Matt Booty said. “We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure.”
The decision will only effect the US arms of Midway, as all overseas operations will continue with business as usual. The company is hoping to get approval for a First Day Motions, which will allow it to continue operations despite the filing.
Booty remains hopeful, citing the success of some recent releases. “Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.” Still, with little else on the horizon, the future doesn't look so bright for the troubled publisher/developer.
http://arstechnica.com/gaming/news/2009/02/midway-files-for-chapter-11.ars
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