Video Game Accessories Maker Mad Catz Interactive Files for Bankruptcy
The peripheral and accessories maker Mad Catz has officially declared chapter 7 bankruptcy, with the company's assets to begin a liquidation process.
Known for their third-party accessories such as controllers and fighting sticks, Mad Catz has a history dating back to the late 1980s in the gaming industry, while the company has unfortunately suffered hard times in recent years and is officially closing up.
Mad Catz Interactive has officially filed for chapter 7 bankruptcy according to a press release, with former boss Karen McGinnis explained that the company “has been unable to find a satisfactory solution to its cash liquidity problems,” which is the umbrella company that houses Mad Catz for its accessories and peripherals, and the audio company Tritton. Mad Catz officially declared its bankruptcy status on March 30th, 2017, with all of the company’s directors and officers having also resigned.
As a result of the bankruptcy status, Mad Catz will see its various company assets liquidated including the offering of its peripherals and accessories – no official word has been outlined yet though for the status of Tritton, though its other subsidiaries will be offered during the liquidation process.
While the news of the company’s bankruptcy is unfortunate, the process has escalated over the past few years due to varying financial factors, including the company’s gamble on providing the accessories for Rock Band 4 in 2015, which didn’t turn the profits that the company had seemed to hope for. In turn, the company’s share prices reached low points that put the company at risk of being delisted from the New York Stock Exchange.
Mad Catz considered other options over the last week such as selling off assets, finding new investment sources, and more, though ultimately no other solutions seemed to be a viable option, leading the company’s management to file for bankruptcy and to begin the liquidation process.