Who cares? This thing called Atari is really just Infogrames with a borrowed name. And Infogrames is really just GT Interactive. So it's more like "company currently in possession of borrowed and reborrowed name declares bankruptcy."
There's been a couple generations of the Atari Flashback console. From the second generation onward, they were replicas of the actual hardware. You could solder in a cartridge port and play your original games.
Atari US ( real Atari ) is doing a legal maneuver to get rid of the parent company Atari France ( that in reality is just infogrames thinking using Atari name will help them somehow )
Having worked for a company which publisher was Atari and having Atari cancelled all other games in development with the excuse of going just mobile... I can't say I am surprised :)