GAME goes into administration
GAME has now officially filed for administration. It has released the following statement:
"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."
The news GAME's request this morning that it be taken off the London Stock Exchange. A statement released by the troubled video games store chain said there was "no equity value left in the Group".
Yesterday, games industry trade magazine MCV reported a source saying that the most likely course of action by GAME management was to enter into voluntary administration in order to save some of the company's assets and form a new, more efficient high street retailer.
MCV's source suggested that the new company would trim operations, focusing on the GAME stores in UK and Spain only, leaving the rest to "fend for themselves". MCV also speculated that sister-store Gamestation could be sacrificed as part of the cull.
GAME itself responded, challenging “many of the claims in this article”, so perhaps Gamestation will be part of future plans after all.
But with the new development, the voluntary administration speculation was bang on the money.
UPDATE: PWC LLP has issued the following statement:
"Further to our announcements of 21 March, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC LLP to act as administrators for the Group. This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism."
What do you think will now happen to GAME? Let us know in the comments below...