Video Games, Playstation 3, Xbox 360, nintendo, wii, ds, sony, microsoft, PSN, XBLA, Onlive, Playstation Vita, Wii U,
Posted by drew10 on Mar 21, 2012
Game Enters Administration

Game Enters Administration

Retailer Game Group officially entered administration today although, for the time being at least, the company will continue to operate as normal.

Recent positive stories of take-overs have proved to be a false dawn with the company’s board now concluding that the end is in sight.

A company statement read:

‘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’

Industry mag MCV has now claimed that Game now only have 3 options. The first was that OpCapita were to take the business as a going concern. However with the suspension of trading on the shares this seems likely to be a non-starter now. There is still a chance that another company to step in in the final hours to save the business, but again this now seems extremely unlikely.

Option 2 would see Game officially closing all of its stores on Monday with no further trading taking place.

Finally option 3 would see the group closing its Gamestation stores in a bid to keep open the Game shops. This is the most likely scenario in the short term but even this may not be enough to stave off a total closure. The exact nature of business the remaining 300 or so stores could muster is anybodies guess at this time.

Reports have also surfaced that the proposed take-over by US retailer Gamestop has now stalled with Gamestop supposedly only interested in the  Spanish arm of the chain. This is so far unsubstantiated.

As always, we will keep you posted as to any and all developments.

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