The U.S. branch of Atari, quite possibly one of the most recognizable names in the game industry in 80s, has filed for chapter 11 bankruptcy in Manhattan. The goal of the bankruptcy is that the New York-based Atari Inc. wants to separate itself from its French parent company that has been bleeding cash since 1999.
Atari said in a statement to Bloomberg, "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)".
It seems quite simple, Atari wants to separate itself from its parent (Atari SA) and during the bankruptcy proceedings, Atari expects operations to continue on as normal while it revamps its business model.
Atari states that they hope to look to outside investors as a means to raise capital and that they will weigh all means for raising additional funds to keep the company afloat.
Want to learn more about Atari"s past? Check out our recent book review of the company’s operations during its limelight period.
Source: Bloomberg