Atari Files for Bankcruptcy in the US in Attempt to Break Free of French Parent Company

video-games-gaming-newsAccording to this report from the LA Times, the US operations of Atari have filed bankruptcy to break free from their French parent company Atari SA. Formerly known as Infogames, French owned Atari SA has struggled for years, in fact, has not shown a profit since 1999! So in a move to split off from the money losing company, the US operations of Atari have filed Chapter 11. In recent years Atari, which is based out of New York, has been developing mobile and web-based games and has shown a profit of $11 million and $4 million in the last two fiscal years. The company’s growth has been put on hold because of a default on monies borrowed from BlueBay Asset Management. So if Atari, Inc. can complete the Chapter 11 filing, then it could reemerge to become successful once again. Pretty sad to see this happen to a company like Atari. Especially when one like Nintendo continues to be a success these days. (Source: LA Times)

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