The company which comprises of both GAME and Gamestation has this morning issued a statement saying its efforts to save the company have so far failed, and they are now entering administration…
“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.”
GAME will continue to trade from other 600 stores accross the UK in an attempt to sell off pre-owned stock to release some equity.
“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 had needed to raise more than £180 million by the end of this week to avoid slipping into administration. It’s evident that this was no where near possible.
So far several companies have announced there interest including US giant GameStop and Comet owner OpCapita.
Administration protects GAME Group from legal action from creditors, however many had already stopped trading with GAME.