Mad Catz faces possible closure due to financial struggles

Mad Catz survival is unsure as it fails to meet monthly figures - everything is hanging on Rock Band 4.

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The well-known brand of arcade sticks and accessories, Mad Catz, is facing some severe financial struggles which may result in closure, GameSpot says.

Mad Catz faces possible closure due to financial struggles | TweakTown.com

Failing to meet a monthly fail-safe target as set by it's credit lender, Wells Fargo, Mad Catz warned its investors of an unclear future. Wells Fargo waived this violation on June 23, opening a new agreement which will be upheld until July 31, 2016. Reportedly losing money over the last three years, Mad Catz stated that it will need "significant contributions from anticipated sales of products related to the Rock Band 4 video game" in order to continue operating.

With Rock Band 4 set to be the make or break for Mad Catz, the stakes are high but the hopes are not, with it explained that all of this uncertainty raises "substantial doubt about the company's ability to continue as a going concern." Speaking to Game Informer, Mad Catz announced a $20 million loan initially, set for a possible increase to $35 million from September, all to ensure a smooth Rock Band 4 launch.

Mad Catz chief financial officer, Karen McGinnis, commented that the reason for this credit warning was due to unambiguous wording within financial document settings. She went on to explain that the situation Mad Catz is in is better than it initially seems.

NEWS SOURCE:gamespot.com

I'm a competitive gamer and was an eSports employee. Recent changes have seen me hang up the mouse and move over to the technology world, covering all news for TweakTown, ranging from gaming news to opinion articles and the latest tech releases. Expect to see a few different articles on international eSports news and competitive game releases, as well as audio and mobile device content.

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