As a strategy to break itself off from its troubled French parent, US Atari has filed for bankruptcy, a mature 31 years old.
The LA Times reported that the US wing filed for Chapter 11 bankruptcy as a move to “break free from their debt-laden French parent,” Atari S.A, with hopes to find a buyer for the business.
Atari was a frontrunner in videogaming hardware and software in the early 80’s, but following what is by most to be considered the great “videogame crash” of the late 80’s, Atari found it difficult to re-stimulate the games economy. Nintendo took over with the release of the NES (Famicom), and Atari’s expensive but ultimately failed efforts to remain the front-runner led to a series of expensive and l0w-selling consoles that eventually lead to their dedicated to software. Since then, Atari has been a major player in the videogames industry, but their influence has been shrinking ever since that 80’s crash.
The firm has organised a $28m credit facility, according to LA Times, with BlueBay, which will allow access to enough money for Atari to finish various projects on the horizon.