Game Group, which owns both Game and Gamestation, has announced its suspension of trading on the stock market.
According to a statement released this morning read: “Further to the announcements of 12 March 2012 and 14 March 2012, the 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.
“The Board now considers itself to be unable to assess the business’s financial position, and is of the opinion that there is no equity value left in the Group. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.”
The Company will provide a further update in due course.”
MCV reported yesterday that GAME will enter voluntary administration on Monday, with a plan to open a new company with less stores.
According to the site, this would then see 300+ stores in total across all regions, removing the need to manage multiple stores in each town. Because of this, all Gamestation stores, except the highest performing, would be shut down.
Could this be the start of this process?
We’ll keep you updated.