NEW YORK (Reuters) – Video game publisher Acclaim Entertainment Inc. (Other OTC:AKLM – news) on Thursday said it filed for bankruptcy after failing to line up new financing for a credit line that expired last week.
The Glen Cove, New York, company, which publishes such games as “Combat Elite” and “Alias,” said it filed to liquidate its assets under Chapter 7 of U.S. Bankruptcy Code. It filed in New York.
Acclaim has struggled with in the highly competitive video-game market, lacking breakout hit titles needed to compete.
It has also faced lawsuits from some of its top licensees, including a suit by starlets Mary-Kate and Ashley Olsen. 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.”