Janco Partners’ analyst Michael Hickey has warned that THQ is in very real danger of financial collapse, but THQ are having none of this talk.
CEO Brian Farrell dismissed the commentary and said they’re ”very confident” their plan will ”return the company to profitability.” THQ’s franchises have waned in popularity.
”You have mediocre product and you’re running out of cash,” said Michael Hickey, noting odds of 50-50 THQ will fail to the L.A. Business Journal. ”Not the situation they want to be in right now.”
The trouble company have already announced 600 jobs are for the axe in a bid to reduce costs by $220 million for next year’s fiscal performance.
”I know that makes for good print and sells newspapers, but those aren’t the kind of things we focus on right now,” Farrell told Business Journal. ”When the stock price is depressed, the naysayers can have their day in the sunshine. But we have a plan that we’re very confident will give us cash and return the company to profitability.”
Perhaps that Saints Row movie with 50 Cent will get made after all if THQ is in dire need for a cash injection. Licensed franchises like WWE are now failing to support the company balance sheet as they once did.
Source: VG247
