New York-based Video Game publisher Acclaim Ent. yesterday filed for Chapter 7 bankruptcy with the U.S. Securities and Exchange Commission. The company’s financial woes intensified on Aug. 20, when it’s primary lender, GMAC Commercial Finance LLC, terminated the relationship. Acclaim announced on August 23 that it was in negotiations with a potential replacement lender but an agreement was not reached.
Despite recent hits like Showdown: Legends of Wrestling, Juiced and Red Star, net revenues for Acclaim took a steep dive in 2004. The company reported taking in $142.7 million, compared to $210.1 million for 2003. Gross profit was $64.1 million, down from $78.1 million the year prior. In late July, the company received a letter from The Nasdaq Stock Market stating that it had until Aug. 18 to get the market value of its listed securities back up to $35 million in order to be in compliance with marketplace rules. Since compliance was not demonstrated, Acclaim’s securities were delisted.
Take-Two Interactive and Majesco Holdings have been named as likely buyers for Acclaim’s game franchises and upcoming titles.
Acclaim was founded in 1987 as a Delaware corporation, and maintains operations in the U.S., the U.K., Germany, France, Spain, Australia and Japan. The company develops, publishes, markets and distributes interactive entertainment software for PlayStation 2, Xbox, GameCube, Game Boy Advance and PC.
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