The executive board of UK specialist video game retailer GAME Group have announced their intention to appoint an administrator to oversee drastic measures designed to cover the company's liabilities to lenders and creditors.
The move follows the suspension of trading in shares of the company, which owns the high street brands Game and Gamestation, on the London Stock Exchange. According to an official bulletin on the company's website, the board considers that that "there is no equity value left in the group".
The board's announcement of administration leaves questions open about the group's long-term survival, despite the fact that stores will remain open and trading.
"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," an official statement reads. "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 operates over a thousand stores worldwide, and employs 6,000 people in the UK alone. A rescue bid from Comet owner OpCapita appeared to founder last week after the Guardian reported that lenders, including the taxpayer-controlled Royal Bank of Scotland, were unconvinced by the private equity firm's plans.
According to industry publication MCV, moves may be afoot to divest the company of much of its real estate, possibly including the entire Gamestation chain.