After Being Plagued By Financial Woes, Mad Catz Finally Declares Bankruptcy
After nearly three decades Mad Catz Inc, maker of gaming gear and accessories, is closing up shop. The company has declared Chapter 7 bankruptcy in the USA. As of March 30th, the company has shut down and begun to sell off its assets, with all proceeds going straight to lenders.
The type of bankruptcy is significant. Chapter 7 means that Mad Catz has no plans to reorganize, hence the liquidation of its assets. Mad Catz Inc. has been having financial trouble for some time now. The company has recorded steadily declining revenues in the company’s financial reports, and last year the company laid off nearly 40 percent of its workforce. This was following major investments that the company sunk into developing peripherals for Harmonix’s Rock Band 4.
But the troubles continued. After the company announced a new line of Tekken 7 arcade sticks, it received warning from the New York Stock Exchange that it would be delisted if its stocks continued to trade at abnormally low rates. The company was delisted last week, as shares dropped to as low as $.04. After the board of directors voted to cease operations, what followed was the resignation of the majority of the executives and, according to a source for Kotaku, the company staff have been locked out of their email and been sent home.
It is always sad to see a company that has been around for some time die. Do you folks have any fond memories of Mad Catz equipment? Anything you still have around and use? Let us know in the comments!