Famous for creating retro games like Pong and Asteroids, Atari has filed for Chapter 11 bankruptcy from their New York City based headquarters.
The L.A. Times reports that three of Atari Inc.'s affiliates filed petitions for Chapter 11 reorganization to break free from their French parent company, Atari S.A., who changed their name from French company Infogamers to Atari S.A. in 2003.
If Atari Inc. is successful the L.A. Times reports the company hopes to free itself from Atari S.A., find a buyer to take the company private, and grow a modest business focused on digital and mobile platforms.
Atari expects to sell its assets over the next 90 to 120 days including - some of which include; Pong, Asteroids, Centipede, Missile Command, Battlezone, Tempest, Test Drive, Backyard Sports and Humongous.
Recently the company has fallen on some tough times. Their revenue fell by 34 per cent in the 2012 fiscal year, and suffered an even worse financial loss in 2011 with a drop in revenue by 43 per cent.
Profits for this beloved gaming company have remained tiny in the past couple years, with only 11 million profited in the fiscal year of 2012 and four million in 2011. With shares once valued at more then 11 Euros back in 2008, the company's stocks now struggle to stay at one euro.
The L.A. Times also reports that the company's growth was afflicted by its reliance on London financial company BlueBay Asset for money. If Atari manages to break free, the U.S. business could possibly emerge with its own resources and little debt to BlueBay.