The Mad Catz Kick the Bucket
After a very extensive period of financial confusion, struggles, and uncertainties, Mad Catz has finally filed for bankruptcy. The company began to see a major decrease in its sales over the past several years, leading to many major changes. The most noticeable change was in February 2016 when the company laid off roughly one-third(40 percent) of its staff, shocking many worldwide. Later on in January, Mad Catz was delisted in the New York Stocks Exchange and it was revealed that the companies shares dropped as low as $0.4.
Mad Catz president and CEO Karen McGinnis made a statement on the company’s status. It reads as the following: “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 claims that they were forced to enter bankruptcy after seeing and being informed by their financial adviser that there was “…no viable strategic alternative in respect of a sale of the Company or other corporate sale transaction”
Since filing for bankruptcy, the company has ceased operations and shall begin to move to an “orderly liquidation” of the assets the company contains.
