Atari US files for Ch. 11 to separate from parent

Atari US files for Ch. 11 to separate from parent

NEW YORK (AP) — Video game maker Atari’s U.S. operations have filed for Chapter 11 bankruptcy protection in an effort to separate from their French parent company, which is filing a similar motion separately in France.

In a statement, Atari says the move is necessary to secure investments it needs to grow in mobile and downloadable video games.

Atari’s U.S. operations have shifted to focus on digital games and licensing, including developing mobile games, and have become a growth engine for its owner. France’s Infogrames Entertainment first took a stake in Atari in 2000. It acquired the remaining stake in 2008 and changed its name to Atari S.A.

But the U.S. operations have been better performing than the rest of the company. In fiscal 2012 digital and licensing revenue both grew significantly and contributed 70 percent of revenue, while sales in bricks-and-mortar stores declined.