LONG ISLAND, N.Y.-Acclaim Entertainment, which boasted a string of console gaming successes last decade with hits including “Mortal Kombat” and “Turok: Dinosaur Hunter,” filed for Chapter 7 bankruptcy and will be forced to liquidate.
One of the oldest brands in gaming, the Long Island, N.Y.-based firm had struggled to follow up on its early success, producing controversial titles such as “BMX XXX,” which featured actual footage of topless strippers. Last year, the company launched Acclaim Connected, a mobile gaming label that also failed to gain traction.
The filing was not unexpected: In its annual financial statement filed with the U.S. Securities and Exchange Commission earlier this year, Acclaim’s liabilities totaled $145 million against assets valued at $47 million. Last week, the company let go nearly 600 employees, shuttering offices in New York; Austin, Texas; and Manchester, United Kingdom.
For two months, Acclaim had tried to find a lender to replace GMAC Commercial Finance, whose loan agreement finally expired Aug. 20. When negotiations for a $65 million loan failed two weeks ago, the company’s fate was sealed.
