Video game publisher Acclaim Ent. Inc. filed for Chapter 7 bankruptcy liquidation on Sept. 2, 2004 upon its failure to secure new financing, reports REUTERS. The move is a result of the companys recent lack of hit games and faced lawsuits from some of its licensees, including teen superstars Mary-Kate and Ashley Olsen and BMX biking star Dave Mirra.
Acclaim attorney Jeff Friedman has been assigned as the companys trustee to sell off its assets. The company's assets totaled $47.3 million with liabilities of $145.3 million, according to an annual report filed with the U.S. Securities and Exchange Commission on July 1.
"Negotiations with a proposed lender to replace the company's former primary lender, GMAC Commercial Finance (a unit of General Motors Corp. ), had terminated and the company's credit facility with GMAC expired on Aug. 20 and was not extended," Acclaim said in a filing with the U.S. Securities and Exchange Commission.
The creator of such games as TUROK: EVOLUTION, BMX XXX, JUICED and RED STAR was found in 1987 and had reached its highest share price of $30 in 1993. However, the Glen Cove, New York-based company has been trading under $1 for nearly a year.