As suspected, Acclaim has filed for bankruptcy today. However, the outlook seems even bleaker now than it did last Friday. Rather than opting for the Chapter 11 clause – which could have left some room for manoeuvre (albeit quite small), it has filed for Chapter 7. This means it will have to sell off all its assets and then shut down the business. It’s all fairly final.
With over $100 million in outstanding debts, and with less than $50 million in assets: and no more backing from financial institutions, this spells the end for Acclaim. There have, however, been no announcements as to the future of Acclaim’s finished games that are resting in the pipeline i.e. Juiced and Red Star. These would obviously be considered as assets and will likely be sold off to an alternative publisher.
It’s a sad day when such a long-standing publisher is forced into closure, providing yet more proof that this is an intensely competitive industry. We can only hope that others learn from these mistakes, and that Acclaim’s employees find suitable roles elsewhere.