With the economy being what it is, a lot of larger companies are feeling the heat more than most of us may think.
Midway, who has been struggling for a while, filed for Chapter 11 bankruptcy, which means that they want to try and continue but are waiting for permission from the courts. Chapter 7 is the one that you don’t want to be filing for, because it’s the one that means you are going into liquidation.
Here are some official comments from Midway regarding this whole ordeal:
“We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure.”
“Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment,”
“Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.”
“This was a difficult but necessary decision,”
Indeed it was, but with a couple of their titles looking strong, Midway may just be able to pull through. Let’s keep our fingers crossed.
Last Updated: February 17, 2009