Atari U.S. files for bankrutpcy for protection from French debts
Atari, one of the world’s oldest video game companies, announced this week its filing for bankruptcy but it’s not quite as bad as it sounds. The Chapter 11 bankruptcy protection is actually a strategy Atari U.S. is using as a way to separate itself from its parent company in France, Atari S.A., which is struggling to survive.
It’s not certain, however, which way Atari U.S. will go one bankruptcy proceedings are finished. They may decide to sell all the brands they currently own and start afresh, or they could be planning on restructuring to become a stand-alone company no longer tied to their French parent. Either way, they are expected to come out of the bankruptcy in a healthy state.
Atari S.A., however, could be the true victim here and may very well close completely once the U.S. subsidiary branches off. After all, it was the US company that has been the most successful by ensuring digital downloads of their games were their main focus and, without this, Atari S.A. is unlikely to survive.