Atari files for bankruptcy
After 40 years in business, legendary video game company Atari SA has filed for bankruptcy protection in Paris and New York. Atari dwelled in financial turmoil for quite some time, and things went sour after they lost the prime shareholder BlueBay. According to Atari, they currently owe Blubay 21 million Euros (28 million dollars).
In a recent statement, Atari discussed some of their plans for the future. “The US operations in addition plan to separate from their French parent to seek independent capital to grow in digital and mobile games”.
Largely in part to “strain on cash resources” and “adverse trading conditions and limited development funds”, replacing BluBay proved difficult. Atari only had until March 31 to make a payment, and most investors were weary of their French listing.
Atari SA Chief Executive Jim Wilson states, “the company’s decision to seek bankruptcy protection was the best option to protect the company and shareholders, and said it would seek to maximise proceeds.”
Atari Inc affirms, “The Chapter 11 process constitutes the most strategic option for Atari’s US operations, as they look to preserve their inherent value and unlock revenue potential unrealised while under the control of Atari SA.”
Atari became famous in the 70’s after the invention of Pong and went on to release many more classics such as Asteroids, Missile Command, Combat, Super Breakout, Centipede, and Yars’ Revenge.