In a move that should come as no surprise to anyone in the gaming world, accessory manufacturer Mad Catz has announced its bankruptcy and liquidation of assets. After assembling a task force in 2016 to find a solution to growing debt and liabilities failed, the company had no choice but to close its doors and liquidate what is left.
Mad Catz Interactive, Inc., the US corporation, and 1328158 Ontario Inc., the Canadian subsidiary, have both filed for Chapter 7 Bankruptcy protection, and other subsidiaries will follow suit. All directors and officers have resigned their posts, and PricewaterhouseCoopers Inc. will be the trustee throughout the bankruptcy and liquidation process.
The now former 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.
It is important to note that the liquidation of assets does not mean that product will be discounted. In fact, anything that is already in stores is almost guaranteed that remain at regular retail, as Mad Catz is uninvolved anymore, unless it is a consignment scenario. It is possible that the website, however, will go into liquidation, dumping anything that might be in company-owned warehouses of unsold items.
As of now, there is no information available as to the fate of product warranties. In the past, we have seen asset buyers take over those warranties, and we have also seen warranties terminated entirely. We hope to hear the overall details of this closure in the near future. For now, all we can say is that the loss of Mad Catz is the loss of the major arcade fighting stick manufacturer. Hopefully someone will step in and save that product line, something that makes games like Street Fighter more enjoyable for many.