Basingstoke: GAME Group to go into administration
GAME Group, headquartered in Basingstoke, has confirmed its intention to appoint an administrator.
The parent group, which had sales of £1,625 million and 10,000 employees last year, asked for its shares to be suspended earlier today (Wednesday March 21).
GAME has 1,300 stores worldwide, including 600 in the UK. Sales have been hit by the move by gamers from buying games on disk to downloading and playing online.
The retailer confirmed a few days ago that some suppliers were refusing to supply stock because of the company’s difficulties. It is also understood that rents on a portfolio of stores were due this weekend.
Analysts believe that any new owner would need to close about 300 of the UK stores to make the retailer viable. Rothschild is understood to be looking for a buyer for the whole group.
In a statement, GAME said today: "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."
Resources:- GAME website
