UK Retailer GAME Enters Administration
Things just got worse for retailer GAME. The company today filed for administration, the UK equivalent of bankruptcy. GAME Group has been removed from the London Stock Exchange and all stock trading has been halted.
"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 company said in a statement. "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."
What this means for GAME going forward is unknown. The retailer could re-emerge as a new company with fewer stores, as MCV suggests. Other options include hoping for a buyer and liquidating assets.
The retailer recently had difficulty stocking new titles, such as Mass Effect 3 and SSX after failing to come to reach the right credit terms for publishers.