Mad Catz Files for Bankruptcy, All Directors and Officers Resign

March 31, 2017Written by Jason Dunning

mad-catz

Just days after news hit that they’d be delisted from the New York Stock Exchange, peripheral manufacturer and Rock Band 4 co-publisher Mad Catz Interactive has filed for bankruptcy under Canada’s Bankruptcy and Insolvency Act. Its subsidiary, Mad Catz Inc., has ceased operations and filed for chapter 7 bankruptcy in the United States. Additionally, all of Mad Catz’s directors and officers have resigned.

President and CEO Karen McGinnis said:

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. 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.

The board of directors at Mad Catz made the decision to file for bankruptcy after they were advised “that no viable strategic alternative in respect of a sale of the Company or other corporate sale transaction is being made available to the Company by any third party.”

In the previous fiscal year, Mad Catz lost $11.6 million due to the “incredibly disappointing” Rock Band 4, and they laid off 37% of their staff in February 2016.

Meanwhile, Rock Band 4 developer Harmonix announced yesterday that they laid off 17 staff members. In a statement to Games Industry, they said:

Today we made the difficult decision to say goodbye to 17 talented people as we restructured to align with our current and anticipated development needs. These people all played a role in making Harmonix and its games what they are today and we are more than grateful for their contributions. We are working to ensure that they are taken care of as we make this change.

This is the fourth time in five years that Harmonix has laid off staff.

[Source: Games Industry, Globe Newswire via Game Informer]