Money woes shut Acclaim
Vidgame pub heads for Chapter 11
Long-struggling vidgame publisher reached the likely end of the line Thursday as it filed for bankruptcy after failing to secure a deal for additional credit.
Acclaim hasn't had a hit in a long time and earlier this year admitted it committed a $9.5 million accounting error and would have to restate its earnings for fiscal 2001, 2002 and 2003.
Its other problems include a lawsuit with Mary Kate and Ashley Olsen. The twins allege that the publisher has mishandled the license to use their name and likeness for gaming properties.
Small publishers like Acclaim are having a harder time keeping up in the vidgame business as larger competitors that are able to secure lucrative licenses and have big marketing muscle increasingly dominate the hit-driven biz.
Shares in Acclaim closed at just 2¢ Thursday on the news.
