Mad Catz Files for Bankruptcy

Mad Catz, the company notorious for making mediocre third party controllers and Rock Band 4, has officially filed for bankruptcy. This does not come as a surprise to the community since they've been having financial troubles for over a year now. Back in 2016, Mad Catz laid off roughly one-third of its employee's, most likely because of the poor game sales of Rock Band 4. Since then, the third-party hardware manufacturer has been struggling to stay afloat, and last week, it was delisted from the New York stock exchange due to its "abnormally low trading price". They reached the end of the road today as they filed for chapter 7 bankruptcy. 

"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," Mad Catz president and CEO Karen McGinnis said in a statement.

While filing a chapter 11 bankruptcy allows a company to reorganize under the oversight of the courts, there is no coming back from a chapter 7 bankruptcy. Mad Catz financial advisor informed them that there was no "no viable strategic alternative in respect of a sale of the Company or other corporate sale transaction" was available, and so the company was forced to file for bankruptcy. All of the Mad Catz executives have resigned, the company has ceased all business, and it's not moving to the stage of liquidating all of its assets. 

Whether you liked their hardware or not, Mad Catz was a big name in the gaming industry. It's always a sad sight to see a once prosperous company come to such a detrimental end. Unfortunately, with this news, there's no need for a follow-up. Mad Catz is gone, and there's nothing to be said done about it.