Video Game Company THQ Files for Bankruptcy, Up for Sale

"Employees will continue to work their usual schedules and receive normal compensation," the company says.

THQ Inc., a video game company that licenses several of Hollywood's TV and movie properties, filed for bankruptcy on Wednesday and said it will sell its business.

Wednesday's revelation sent THQ's stock 74 percent lower on volume that was 10 times its norm. By the end of trading, shares had fallen $1.02 to just 36 cents each.

The company said it has taken a "stalking horse" bid of $60 million from Clearlake Capital Group in hopes it will attract higher bids.

It also said it has secured $37.5 million in financing from Wells Fargo and Clearlake and that it will keep its business running, including the development of new games.

Some of the company's games are based on franchises like Nickelodeon's SpongeBob SquarePants, Disney's Princesses, NBC's The Biggest Loser and game shows like Wheel of Fortune and Jeopardy!.

"Consumers and retailers should see no changes while the company completes a sale," THQ said Wednesday. "The new financing will support business operations throughout the period. THQ does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary court approval."