Iconic company Atari is in trouble after a difficult 2012, and appears to be filing for bankruptcy, after profits dramatically dropped - by as much as 34% - last year.
It is being reported by the L.A. Times that the industry defining company filed for Chapter 11 bankruptcy in New York yesterday. According to the report the move is intended to help the company break from from its French parent Atari S.A. (formerly known as Infogrames).
Atari also have a relationship with BlueBay Asset Management, a company that they rely on completely for financial support. After a credit-facility lapsed on December 31, Atari have been unable to secure enough money to release the games currently under development.
Atari will be looking for investment, but only if they're able to successfully file for bankruptcy. If they can position themselves carefully, there's every chance they could emerge with little (or no) debt, and that would certainly make them a more attractive proposition for any would-be investor.