Game Group Going Into Administration
Game Group ‚ÄĒ Europe‚Äôs largest specialty video game retailer, with more than 1,200 stores across the region ‚ÄĒ has filed for administration, the UK-based company announced Wednesday.
The move follows disappointing holiday sales for the struggling retailer, as well as several major game distributors withholding new release titles from the chain last month over credit issues.
Early on Wednesday, Game Group requested that the London Stock Exchange suspend trading of its securities. ‚ÄúThe board of Game has assessed the status of the ongoing and regular discussions between Game and its lending banks, and between its lending banks and a potential third party provider of finance to the business,‚ÄĚ the company stated. ‚ÄúThe board now considers itself to be unable to assess the business‚Äôs financial position, and is of the opinion that there is no equity value left in the group.‚ÄĚ
The company‚Äôs board does expect discussions with lenders and third parties to continue ‚Äúunder the protection of [an] interim moratorium‚ÄĚ period of reportedly 10 days (via MCV). PwC is expected to be appointed as the company‚Äôs administrator (via the¬†Financial Times).
In addition to its 1,224 locations in the UK and Europe, Game Group operates 94 stores in Australia.