Mad Catz Files for Chapter 7 Bankruptcy
Subject: General Tech | April 1, 2017 - 04:04 PM | Scott Michaud
Tagged: Mad Catz, bankrupt
Back in September, we reported on the purchase of Saitek, from Mad Catz to Logitech, for $13 million USD in cash. Unfortunately, we now need to report that Mad Catz has filed for Chapter 7 bankruptcy on March 30th, 2017. This level of bankruptcy is strict; it involves shutting down and liquidating. If we see a Mad Catz in the future, it will be someone else who purchased their trademark.
When I first heard this news and posted it in our PC Perspective Slack channel, the immediate reaction was, “Is this an early April Fool’s joke?” Apparently not, but it highlights how out-of-the-blue this seemed if they weren’t on your radar. Last year, they shrunk their workforce by about 37%, but the news kind-of flew past us. (A good barometer of company health is that lay-offs around 10% is typical for a restructure. When you start getting past this level, like 15% or more, then it’s okay to be suspicious about whether it’s driven by something other than the stereotypical handbook of corporate management.)
Other than this early tremor, and the New York Stock Exchange delist story from earlier this month, it seemed like the company was just coasting along. Hopefully everyone affected will have no problems finding new employment soon.