Atari CEO Resigns as Company Withdraws from Production
has word that David
Pierce has stepped down from his position as CEO of the troubled gaming company,
which has also announced its exit from the production end of the business.
Here's a bit:
Amidst concerns about the company's lack of funds and
ability to continue its business, Atari officials announced today that the
publisher will "re-focus its operations on publishing and distribution in North
America, completing its withdrawal from the production business."
According to the release, Atari's operations going forward "will involve title
acquisition, sales and marketing, and physical distribution of products from
[Infogrames] IESA, its 51% shareholder, and other selected partners."
Atari has agreed in principle to terminate its Production Services Agreement
with IESA in the near future. The company is planning to transfer certain
employees and contract other staff on a project basis for a limited period of
time. Unfortunately for Atari's employees, this restructuring initiative will
also reduce the company's current workforce "in order to re-align the Company's
cost structure with its on-going business base."
Along with the withdrawal from production, Atari CEO David Pierce has also
announced his resignation. Curtis G. Solsvig III, Chief Restructuring Officer,
has been appointed interim CEO and will assume Pierce's responsibilities for
now. Atari said that an executive search for a new CEO has already been started.