Nearly three decades after Atari closed the doors on its first iteration, the videogame pioneer is attempting another reinvention. It just had to file for bankruptcy first.
The company’s United States subsidiary, Atari Interactive, filed for Chapter 11 protection on Monday as part of an effort to cleave itself from its French parent, Atari S.A.
The move, made in the Southern District of New York, is meant to pave the way for a sale of the division, including its distinctive logo and rights to staples of many a Generation X member’s childhood: Pong, Asteroids and Centipede, among other games. The company will continue to operate normally during the bankruptcy case.
If successful, the move will mark the latest chapter for a company that introduced videogames to millions by letting them thwacking a crude virtual ball back and forth across a television screen.
Atari first faltered during the bursting of the videogame bubble in 1983 and has made periodic attempts to remake itself sice then. Its latest phase is more in keeping with the times: The company now focuses on producing mobile and online games, including remakes of its top titles for iOS and Android devices.
Beginning in 2000, the company began its absorption into Infogrames, a French videogame producer that in 2008 adopted the name of its prominent subsidiary. But Atari S.A., as the newly rechristened company is now known, has struggled financially. Several weeks ago, the company lost access to new money from its primary lender, BlueBay Asset Management.
Atari S.A.’s shares have tumbled nearly 49 percent over the past 12 months, closing on Monday at just 86 euro cents.
Now Atari is seeking to sell its American operations through what is known as a 363 sale, allowing a buyer to gain control of the company’s core assets free of any liabilities.
“In light of the current situation with BlueBay, we have decided to! take what we think is the best decision to protect the company and its shareholders,†Jim Wilson, Atari S.A.’s chief executive, said in a statement. “Through these ongoing procedures, and especially the auction process in the U.S., we will seek to maximize the proceeds in the best interest of the company and all of its shareholders.â€
In a court filing, Atari listed having less than $50 million in assets and less than $500,000 in liabilities. It has obtained about $5.25 million in bankruptcy financing from Tenor Capital Management.
Atari Interactive's bankruptcy filing by
