For nearly three decades, Mad Catz has been the leading manufacturer of video game peripherals. The company produced everything from controllers, battery packs, memory cards, headsets, and fight sticks for PC, consoles, and handhelds. For the past several years, however, the company has faced serious financial trouble. Just last year, the company laid off 40% of its employees. In January they received a listing deficiency notice from the New York Stock Exchange because its stock was trading so low. When Mad Catz shares dipped below $.04, the company’s days were numbered.
Mad Catz today announced via press release that its Board of Directors voluntarily filed for bankruptcy yesterday. PricewaterhouseCoopers Inc (PWC) has been appointed as the trustee of the company’s estate. PWC will now oversee the liquidation of Mad Catz’ assets to pay off all of the debt it has incurred. Mad Catz also petitioned chapter 7 bankruptcy in the United States to initiate an orderly liquidation of its assets. As of yesterday, all of Mad Catz’ directors and officers have officially resigned.
In the press release, President and Chief Executive Officer, Karen McGinnis stated, “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.”
With the exception of the new Tritton headset, all of Mad Catz’ products from the past year have been reworked versions of existing products (according to Kotaku‘s sources). Things like the recently announced Tekken fight sticks are just products the company had already created.
Anyone who has been paying attention to Mad Catz’ financial situation could see this coming from a mile away. With that said, it is still sad to see such a fixture in gaming close its doors so suddenly. Hopefully, all of the Mad Catz employees will be able to find work new jobs soon.