Mad Catz enters bankruptcy

Mad Catz is being put down. The beleaguered peripheral maker today announced that it has ceased operations and filed for chapter 7 bankruptcy "to initiate an orderly liquidation of the assets of the Company."

"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," president and CEO Karen McGinnis said. "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."

McGinnis and the rest of the company's officers and directors resigned yesterday. Mad Catz' board of directors agreed to voluntarily begin the bankruptcy proceedings after determining that there was "no viable strategic alternative" with no possible sale of the company emerging and no willingness on the part of its lenders to increase credit lines. PricewaterhouseCoopers has been appointed as the trustee to handle the company's estate.

Mad Catz Interactive's roots trace back to the early '90s. While it spent most of its existence as a manufacturer of gaming peripherals like mice, keyboards, and gamepads, it expanded into gaming headsets with the acquisition of Tritton and in recent years had invested in publishing. Unfortunately, its decision to co-publish 2015's Rock Band 4 with developer Harmonix did not pay off. Shortly after the game's launch, the company's chairman of the board, CEO, and general counsel all resigned. The next day, it announced plans to restructure the company and lay off 37% of its employees in the process, and would later underscore the entire Rock Band 4 endeavor as "incredibly disappointing."

The following year has seen a continuation of bad news for Mad Catz, with the company selling off its Saitek line of flight sticks and steering wheels for less than half of what it acquired the division for a decade ago, and more recently being delisted from the New York Stock Exchange.