Wednesday, 21 March 2012
Game Group in administration today
Game Group has confirmed that it is going into administration today as the administrators have failed to find a buyer... However there are rumours that its lenders, led by Royal Bank of Scotland, may buy the business out of administration. See previous post below
Shares in Game Group plc were suspended this morning "pending clarification of the company's financial position" This is the usual code for fact that the business is likely to call in the administrators. Earlier the company announced that there was little value in the shares and they fell 75%. It should be remembered that the shareholders come last in any distribution of remaining funds should the business become insolvent. As such, there is not much point being listed on the stock market.
The March rent quarter day, that is fast approaching, is often the catalyst for retailers collapse as the administrators do not want to find themselves with a liability of 3 months rent in advance being due.
Game Group has over 1300 stores and employs 6000 people in the UK and 10,000 worldwide. It should come as no surprise that video game stores are suffering in the face of competition from the Internet.
The company has been in talks with its lenders and has also put the business up for sale.
If you are an employee of Game Group at this stage we do not know who the administrators are likely to be so please do not phone us up. For help for employees please refer to our help for employees page.