Video game publisher and developer THQ has been having a rough couple of years with many people noting the company’s downfall thanks to its uDraw tablet and it looks as though things are going to get rougher as the company has just filed for Chapter 11 bankruptcy.

THQ has entered into an asset purchase agreement with Clearlake Capital Group with the private equity firm “to acquire substantially all of the assets of THQ’s operating business, including THQ’s four owned studios and games in development.”

THQ CEO Brian Farrell sheds some light on why this move was needed:

“The sale and filing are necessary next steps to complete THQ’s transformation and position the company for the future, as we remain confident in our existing pipeline of games, the strength of our studios and THQ’s deep bench of talent.”

THQ hopes the sales process will be completed in 30 days with no layoffs currently planned and its employees will continue to work on their upcoming titles. All of THQ’s studios will remain open, which is good news for THQ fans who have been anticipating some of its upcoming releases, like South Park: The Stick of Truth.

Filed in Gaming. Read more about Thq.

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