Atari Files Bankruptcy
Atari was one of the very first video game companies, starting way back in 1972. However, this long-running name that brought us titles like Pong and Asteroids is having major financial issues. Atari's United States branches have filed bankruptcy on Sunday, Janary 20 2013. This bankruptcy is an attempt to separate themselves from their French parent which has quite a bit of debt. The plan is to split from the French parent and find a buyer to form a private company.
Atari has had financial problems already since the early 2000s, and this became even worse after Infogrames (the French company now known as Atari S.A.) bought them in 2003 and acquired all of Atari's American assets in 2008. Atari S.A. has not been a profitable company for over a decade, however the American branch of Atari seems to have been improving.
One of the major problems for Atari's finances seems to be its reliance on a London-based company called BlueBay Asset Management. It's hoped that Atari's American branch and its 40 employees can rebuild the company by separating themselves from all of the foreign debt-making companies and simplifying its structure.