One of the greatest names in video games, Atari, has filed for Chapter 11 bankruptcy in the US.
The company, started by Nolan Bushnell, was responsible for bringing to the industry the iconic Pong video game in 1972 and latterly Asteroids. Since then the company has shifted into the software business, supplying games to the console business and to mobile devices, but was taken over by the French company Infogrames Entertainment.
Infogrames initially bought a stake in Atari in 2000 and then acquired the rest of the shares in 2008 and changed its group name to Atari S.A. But the French parent has consistently failed to make any profit.
The group had its credit suspended and now owes €21m to BlueBay Asset Management, the balance due at the end of March this year. The American company is seeking to free itself of its French parent and will operate as normal during the bankruptcy proceedings. It has approval for a US$5m loan from Tenor Capital, a company which specialises in distressed lending.
The intention for Atari US is now to seek secure and independent capital for future growth in the target areas of digital and mobile games. Meanwhile, it will seek buyers for some of its assets, including the company logo and some of its games, of which it has 200.
