Infogrames Initiates Atari Board Purge

Officials from French publisher Infogrames Entertainment have announced that a total of five board members from majority owned U.S. affiliate Atari Inc. are to step down, as part of plans for reconstruction at the beleaguered firm. Last month, Infogrames executives announced that they would shortly unveil a plan to restore profitability at Atari, which has been blamed for dragging down overall group profits. “We are negotiating with the management and the board of Atari Inc. to restore (financial) equilibriums," said Infogrames CEO Patrick Leleu at the time. According to an AFX news report only three board members will survive the reorganization. The remaining executives will be responsible for nominating new members and a “chief restructuring officer” to oversee the continued restructuring plans. “The appointment of a new board for Atari ... will allow the group to get closer to achieving the key objectives of this plan,' which include improving its finances, reviving publishing initiatives, improving distribution and leveraging the Atari name,” said Leleu.