Atari US has filed Chapter 11 Bankruptcy, according to the LA Times. The move was made in an effort to become independent from its French parent company, Atari S.A. Atari US hopes to find a buyer in the next few months and plan on focusing on digital and mobile platforms.
Profits have been shrinking the last couple of years. $11 million and $4 million for the last two fiscal years. Revenue has taken the biggest hit dropping 43 percent in 2011 and 34 percent in 2012.
Atari US has seen stagnant growth due to its reliance on BlueBay Asset Management for cash. A $28 million credit lapsed on December 31. Atari has not had the resources to release its games that are currently in development. If the Chapter 11 is successful Atari US could have very little or even no debt to BlueBay.
It is not known who may be interested in purchasing Atari US once the Chapter 11 has been successful.