Video game pioneer Atari has filed for Chapter 11 bankruptcy in the United States. The move is reportedly an attempt to severe times with French publisher Atari S.A.
Over the next few months, the company will attempt to sell a number of its assets. According to Engadget, Atari will offer up a number of iconic titles to the highest bidder. Included in the sale are such classics as Tempest and Pong. The company is also interested in selling off its logo.
Atari is taking steps to become an independent entity, a move which could allow the company to continue operating while rebuilding its brand. Although the publisher has released a number of its older titles across multiple platforms, new games are very few and far between.
USA Today explains that recent re-releases of several video game classics onto mobile platforms has allowed both Atari and Atari S.A. to generate profits during 2011 and 2012. Reports state that neither company has been able to turn a profit in nearly a decade.
A lack of new games has also hurt Atari in recent years. The Ghostbusters title released for consoles in 2009 was the company’s last major release. However, games such as Breakout and Asteroids have reportedly sold well in Apple’s App Store.
According to the Los Angeles Times, the company has secured $5.2 million in debtor-in-possession financing. This will help the company continue to release games and finish current titles that are presently in the works.
The London-based financial company BlueBay Asset Management was previously responsible for providing the company with enough cash to remain operational. However, the recent lapse of a $28 million credit facility with BlueBay essentially left Atari without the means to support itself.
If everything shakes out in Atari’s favor, then it could return as an independent company looking to make a name for itself in an industry it helped create.