Atari Files For Chapter 11 Bankruptcy To Separate From Nonprofitable Parent Company

We’re sure if you’re an old-school gamer, the image above will remind you of better days playing games like PAC-MAN, Asteroids and Centipede. Unfortunately, Atari is going through some tough times lately, specifically its French parent who has not been profitable in 14 years.

The U.S. operations of Atari is filing for bankruptcy protection as they look to separate from its French parent company. Atari would like to raise independent funding to develop mobile games and plans to do so with its affiliates 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),” the company shared in a statement today. “During this period, the company expects to conduct its normal business operations.”

Hopefully the U.S. courts will allow Atari to break away from its French parent company as a video game industry without Atari in it would be like major league baseball without “insert your favorite baseball team here.” Sure, the games industry could continue without them, but it just wouldn’t feel the same.

Daniel Perez
Categories: Gaming
Tags: atari