Mad Catz is no more.
The gaming peripheral company announced its official voluntary bankruptcy filing today after years of financial insecurity. All of Mad Catz’ directors and officers have resigned, with the entirety of its assets entering liquidation.
Mad Catz has struggled to meet financial goals for a few years now, with its issues coming to a head in 2016. In February of last year, Mad Catz laid off 37 percent of its staff following low sales of its Rock Band 4 hardware. The company reportedly lost more than $4.3 million across its first three quarters of the 2016 fiscal year.
The rest of Mad Catz’ offerings—which included an extensive line of fight sticks—were not enough to make up for its massive losses, apparently. Likewise, those paying attention to Mad Catz’s troubles are likely not surprised by the announcement.
“For a significant amount of time the company has been actively pursuing its strategic alternatives,” Mad Catz CEO Karen McGinnis said in a statement. “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.”
Money from the liquidation sale will go toward paying back the company’s debt.
Published: Mar 31, 2017 12:45 pm