Popular video game company Atari U.S. files Chapter 11 bankruptcy in an effort to help the company expand into new digital and mobile gaming concepts. The company has faced numerous financial problems in recent years. Close to 90 percent of Americans recognize the game company logo with some of their most popular games include "Pong" and "Asteroids." Atari is also using the filing to separate from their parent company based in France.
Over the years Atari has had financial issues with some stemming from its French parent, Atari S.A (previously known as Infogames). The bankruptcy filing will make way for a private investor to take on the company; an action it leaders hope will happen in the next few months. The parent company is said to be holding the release of new games pending issues with their credit facility. In the last year, the company has seen share prices drop by 50 percent.
Through the filing the company will work to get a $5.25 million funding approval to continue business operations. Atari continues to review the possibility of selling some or most of their assets including their highly recognized logo. Representatives for the U.S. based company feel Chapter 11 bankruptcy offers more strategic options beneficial to the company. In recent years the company has produced applications for mobile and digital platforms that include remakes of it classic games. Atari entered the gaming scene during the early 1970s and produced some of the first gaming consoles like the popular Atari 2600.