Today peripheral maker Mad Catz has filed for chapter 7 bankruptcy, with the company now officially stopping all operations. The company was facing financial issues for years, with Mad Catz company laying off one-third of their staff in February 2016 and being delisted from the New York Stock Exchange back last week.
Below is a quote by Mad Catz CEO Karen McGinnis, who states that the company was unable to find any near-term financing or sell any of the company’s assets or the brand in its entirety. This has left the company with no option other than 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
Chapter 7 Bankruptcy cannot be recovered from, with all Mad Catz executive having resigned and ceasing all of their operations. Now, all that needs to be done is asset liquidation, which will help to pay off the company’s massive debt.