THQ Hires Firm to Explore ‘Strategic and Financing Alternatives’

Following yesterday's poor financial results for the fiscal second quarter, THQ had delayed several titles and has an outside firm to explore its options. The titles getting pushed included South Park: The Stick of Truth, Metro: Last Light and Company of Heroes 2. THQ recorded a loss of $21 million during its fiscal 2013 second quarter on sales of $107.4 million. The company says that it has about $36.3 million of cash and equivalents, down nearly half from the $76 million it had a year ago.

The company has also appointed Centreview Partners to help it get out of the mess it finds itself in. That company will help them find "strategic and financing alternatives" which might be coded talk for a possible sale.

"Clearly, THQ faces a number of opportunities and challenges," Brian Farrell, THQ's chief executive, said in a statement. On a conference call, he said that even though the company has successfully cut costs, the delay of games like "South Park" will contribute to THQ's cash crunch."

While the company read statements from various executives during its conference call it did not take questions from investors or the media following those statements.

We will have more on this story as it develops…

Source: GII

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