The US division of Atari (and not, as you might have read elswhere, Atari itself) has filed for bankruptcy, according to reports overnight.
According to the LA Times, the bankruptcy was initiated in an attempt to break free “from their debt-laden French parent”.
The plan is to find a buyer within the next few months and take the company private, with one source claiming that the goal is to “grow a modest business focused on digital and mobile platforms.”
Atari is closely tied to Infogrammes, who changed their name to Atari S.A. in 2003. Atari US employs 40 people and mainly produces web and mobile games.
“There is evidence that the U.S. operation, which after the sale of other assets now makes up the bulk of Atari S.A.’s business, has been improving,” says the LA Times. The parent company has been profitable ($11 million and $4 million) for the last two years.
It’s not obvious who might be interested in the company yet.