Atari has filed for Chapter 11 bankruptcy protection in the US, setting the stage for a sale of some of the most famous names from the early days of video games in the 1970s.

The company said its US business and three other companies – Atari Interactive, Humongous and California US Holdings – expected to sell all their assets in the next 120 days.

Atari, which has changed ownership several times since it was founded in 1972, provided a generation with its first taste of video games. Steve Jobs, the late chief executive of Apple, was an early employee.

Atari Inc, the US operation, said that a Chapter 11 bankruptcy process was “the most strategic option” to preserve value and “unlock revenue potential unrealised while under the control of Atari SA”, its French parent. – (Copyright The Financial Times Limited 2013)