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GAME fails to find a buyer, administration now official [update]

Update: GAME Group is now officially in administration. A statement has been released by the groups administrators which reads as follows:

Mike Jervis and Stuart Maddison of PwC were appointed joint administrators of the UK and Ireland operations of The GAME Group plc, Game Stores Group Limited, Gameplay (GB) Limited, Game (Stores) Limited, Games Station Limited, Game (retail) Limited, Gamestation Limited (“the group”) on 26 March 2012. The appointment was made following the company’s announcements on 21 March that the listing of its securities on the Main Market of London Stock Exchange plc had been suspended from trading and a filing of a notice of intention to appoint an administrator had been made.

The group, with a turnover of £1,625m in the year to 31 January, is a multi-channel retailer of video games and video games hardware trading under the names of Game and Gamestation. The group’s head office is based in Basingstoke with operations in the UK and Ireland, Spain, Portugal, France, Czech Republic and Australia. There are currently 609 stores throughout the UK and Ireland. There are 385 employees based in the group’s head office in Basingstoke and 5,136 store employees across the UK and Ireland.

Mike Jervis, joint administrator and partner at PwC said:

“The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.

“Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK. As a result we are hopeful that a going concern sale of the business is achievable.”

Original: Sky News is this morning reporting that GAME Group will go into administration after failing to find a last minute buyer.

It had been suggested that RBS may make a last minute bid, however even if this was to be the case, stores would be closed down and the company would certainly not have the presence on the high street that it does at the moment. In addition, any debt (currently standing at £85m), would be rolled over into the new company.

The group is expected to pay its staff any outstanding wages, however a question mark still remains over other outstanding debts to landlords, suppliers and shareholders.

We expect there to be more news on GAME Group’s plight throughout the week, so as usual we’ll keep you informed.

Our thoughts are with GAME Group’s staff at this time.

Edited On 26 Mar, 2012

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