Mad Catz Files Bankruptcy - Twice

Mad Catz Files Bankruptcy

Files Chapter 7; will liquidate its assets
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Mad Catz Interactive is going out of business.

The gaming accessory manufacturer filed an 8-K form with the Securities and Exchange Commission on March 30 stating it has “ceased operations and made voluntary assignments in bankruptcy.” Its San Diego-based U.S. subsidiary has filed for Chapter 7 bankruptcy relief and will liquidate its assets.

PricewaterhouseCoopers was named trustee in bankruptcy of the estate in Canada, while a Chapter 7 trustee will be appointed by the court for the U.S.  All company directors and officers have resigned.

In a statement, Karen McGinnis, president/CEO, said: “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 announced on March 30 it would be delisted by the New York Stock Exchange because of low trading prices. In its most recent financial statement on Feb. 2, the company said fiscal third-quarter net sales decreased 71 percent to $19.1 million.

Mad Catz manufactured PC and console gaming and flight-simulation accessories under the Mad Catz, Tritton and Saitek brands. It garnered attention two years ago when it announced it would revive the once-popular Rock Band line.

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