Acclaim Files for Bankruptcy3 Sep, 2004 By: Lyndsey Shinoda
Video game maker Acclaim Entertainment Inc., hurt by a deficiency of hit games, filed for bankruptcy liquidation Thursday after failing to line up new financing, according to a Reuters report.
Despite being one of the oldest game brands in the industry, Acclaim has had a string of failed games and faced lawsuits from top licensees like Mary Kate and Ashley Olsen, and biking star Dave Mirra.
According to the report, Acclaim attorney Jeff Friedman said a trustee has been chosen to sell Acclaim's assets, including upcoming titles, but games in development may lack the funds to be completed.
According to its annual Securities and Exchange Commission report, Acclaim's assets totaled $47.3 million with liabilities of $145.3 million as of July 1.
Friedman said that at least one creditor was owed more than $20 million, the report said.
The contract with the company's primary lender, GMAC Commercial Finance, expired Aug. 20 and was not renewed, according to SEC filings.
Although shares of Acclaim peaked at more than $30 in late 1993, they've gone downhill since, with trading less than $1 since last September, and had spiraled down to 2 cents a share by Thursday morning.