Acclaim goes under, files for Chapter 7

Acclaim Entertainment filed for Chapter 7 bankruptcy in a filing with the US Bankruptcy Court in Central Islip, New York. 600 employees have lost their jobs and the fates of several in development games, including Juiced, The Red Star and 100 Bullets, as well as new entries in the “Worms” franchise, are currently up in the air. The company has also faced lawsuits from some of its top licensees, including ones from teen superstars Mary-Kate and Ashley Olsen and biking legend Dave Mirra. At least one creditor was owed more than $20 million. Earlier this year, it restated three fiscal years of financial results to correct an accounting error. The company had been trying for months to get new financing. Negotiations with a proposed lender to replace the company’s former primary lender, GMAC Commercial Finance had terminated and the company’s credit facility with GMAC expired on Aug. 20 and was not extended. According to its annual report filed with the U.S. Securities and Exchange Commission, the company’s assets totaled $47.3 million and liabilities of $145.3 million, as of July 1. Shares of the Glen Cove, New York-based company, which was founded in 1987, peaked at more than $30 a share in late 1993 but last broke $5 in mid-2002 and have traded below $1 since last September. Over-the-counter Pink Sheets of Acclaim traded at around 2 cents on Thursday morning. RIP…..