It is something that is hard to hear, but the video gaming company that gave the world "Pong" more than 40 years ago, has filed for bankruptcy. As of Sunday, Jan. 20, 2013, Atari has filed for bankruptcy in the United States in a bid to protect itself from the debt problems of its French parent company.
Atari is looking to have its U.S. business along with Atari Interactive, Humongous, and California U.S. Holdings, all be separate from its French parent company known as Atari S.A. Atari released a statement saying the French company is having "structural encumbrances."
Atari and those other companies filed petitions for Chapter 11 reorganization in U.S. bankruptcy Court in New York late on Sunday evening.
Over the course of the next three months, it is expected that the three U.S. companies for Atari will sell all of their assets or reorganize the company in such a a fashion that they would be totally separate from Atari S.A. In selling their assets, that also includes its brands and logos.
Atari is expected to carry on with business as normal.
In the United States, Atari is run by Chief Executive Jim Wilson, who joined the team back in 2008, and has just 40 employees total. A couple years later in 2010, Wilson became CEO of the French parent company. Atari has been developing mobile games for smartphones and the web.
It is expected that Atari S.A. will need to find a buyer or completely dissolve.