Atari U.S.based video game making company filed for bankruptcy in Manhattan with the intention of separating from the unprofitable French (Atari S.A) parent and seeking independent funding. Atari, Inc. founded in 1972 by Nolan Bushnell and Ted Dabney pioneered the game industry with games like Pong and Asteroids. The company at one point even employed Steve Jobs before he went on to found Apple.
With the filings done yesterday the company has 90 to 120 days to sell all, or substantially all, of their assets, in a free and clear sale under the U.S. bankruptcy laws, or confirm reorganization plans that accomplish substantially the same result.
Atari owns or manages more than 200 brands, including Centipede, Missile Command and Rollercoaster Tycoon. Their games are made to be played on consoles and online. The move to separate the U.S. business comes not a minute to late at their French partner has not rolled a profit since 1999 and is expected to have another loss in the coming year.