GAME Group, which sells computer video games and consoles, has filed for administration.
The firm made the announcement shortly after its shares were frozen saying “there is no equity value left in the Group”. GAME will continue to trade in the short term while discussions continue.
GAME said in a 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 retailer has more than 1,300 stores under the GAME and Gamestation and has more than 10,000 employees. Shares closed at 2.39p earlier after falling from 62p a year ago.
Recently it was unable to secure top titles including Electronic Arts’ Mass Effect 3 and had to turn away paying customers. It has struggled to compete with the likes of Amazon and Steam.
Comments
hampshirehog said: It is the changing way of the world and a Company that has been unable to change in line with electronic media developments remaining rather stuck 15 years in the past It has been overtaken by the young world and left behind
Johankoll said: Cant agree more with you and having been treated very badly in one of GAME-s Irelands shops in Athlone over Christmas time I feel no sympathy to company like thisBye bye
mojostapegun said: ROFL Well thanks for the memories CEX to go under next with the release of the NEXTBOX ultimatley the death of the pre-owned market and then HighSt Media specialistConsumers are a more educated bunch these days with the introduction of smart phones with Shopping apps the deals customers can get from their handheld devices almost make high street retailers obsoleteI have worked in retail management for over a decade and have seen first hand the impact of the combination of Handheld Internet devices and more price savvy customers High overhead companies simply can not compete in that evironmentI for one will not weep over their demise i can get better service prices and more reliable delivery from the information held in the palm of my handGAME OVER