Atari Files For Bankruptcy
The U.S. operations of Atari is filing for bankruptcy protection as a way to separate from their French parent company. You may remember Atari as being the company that developed retro games like PAC-Man, Asteroids, and Centipede. Atari’s parent company has not been profitable in 14 years. Atari is planning to use their own independent funding to develop mobile games and will do that with it’s affiliates like Atari Interactive, Humongous, and California US Holdings.
“The Chapter 11 process constitutes the most strategic option for Atari’s U.S. operations, as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari SA (ATA),” said Atari in a statement. “During this period, the company expects to conduct its normal business operations.”
It is not guaranteed whether U.S. courts will allow Atari to be able to break off their partnership with their French parent company. Atari is owned by Atari Interactive, a subsidiary of the French publisher Atari, SA. The original Atari was founded by Nolan Bushnell and Ted Dabney in 1972.