GAME calls in administrators
Struggling European retailer GAME will call in the administrators, the company's board has confirmed today, after ceasing trade of shares in the group earlier today. The gaming store has "not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business" after ongoing negotiations with stakeholders, the board said in a statement. GAME's troubles were flagged earlier this month, with news that the company had put itself up for sale after falling sales and the rise of internet retail.
Walmart was subsequently tipped as a potential suitor, though it appears any negotiations there failed to reach a conclusion. Earlier today, GAME's board announced it was "unable to assess the business's financial position, and is of the opinion that there is no equity value left in the Group" and "requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today."
The statement also confirmed that, in addition to the existing banks GAME Group had a relationship with, there was "a potential third party provider of finance to the business" in talks.
"Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator.
In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium" GAME Group plc board statement
More information is promised soon, but things aren't looking good for the retailer or its staff. Just a few weeks ago it was suggested that the company couldn't even afford to pay the ongoing rent on its stores.