Infogrames overhauls Atari's board
France-based parent company dismisses majority of beleaguered subsidiary's directors.
Atari parent company Infogrames has revealed its latest attempt to salvage its perpetually ailing subsidiary. As part of its latest restructuring plan, the France-based company said it would be replacing five members of Atari's board of directors to go into effect as soon as proper notice had been served. New board members, who are currently being nominated and evaluated, will join the three remaining Atari directors: Evence Charles Coppee, Jean-Michel Perbet, and Thomas Schmider.
As reason for the overhaul, Infogrames unsurprisingly cited Atari's dismal 2006-2007 fiscal year, where the publisher posted a net loss of $70 million. Expressing continued support of the Atari brand, Infogrames chairman and CEO Patrick Leleu said, "This major step will allow the group to get closer to achieving the key objectives of this plan, which include: relaunching the publishing activities to leverage the group's intellectual properties, taking the necessary actions to improve further our distribution, particularly in the United States, developing an online presence to take full advantage of this global entertainment medium, and more extensive use of the Atari name, one of the most recognized brands in the industry."
Today's move is the latest in Infogrames' efforts to return its subsidiary to profitability. In January, the Neverwinter Nights and Alone in the Dark publisher underwent a 10-to-1 reverse stock split to meet the NASDAQ stock exchange's $1 minimum bid price. In May, the publisher laid off 20 percent of its workforce, primarily those with administrative titles, to cut down on what it called "redundancies." In 2006, Atari sold off several of its internal studios, including Stuntman developer Paradigm Entertainment and Driver wheelmen Reflections Interactive.
Got a news tip or want to contact us directly? Email firstname.lastname@example.org