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Posted by drew10 on Mar 12, 2012
It looks like Game’s Over as Shares Slide

It looks like Game’s Over as Shares Slide

Troubled retail chain, Game Group looks doomed as shares plummeted this week and senior staff were told to prepare for administration.

After EA stopped supplying stock other companies are sure to follow suit fearing they will lose any unpaid stock which would be sold off by administrators.

Game are currently slashing prices across all stores in an effort to raise some much needed capital but this appears to have come too late to save the chain.

Despite only last week the board purchasing shares worth over £900,000 in an attempt to kick-start the chains revival the share price has continued to fall. That investment is now only worth just under £250,000 with shares currently trading at around 0.5p a share.

It looks less and less likely that Game (including Gamestation) will continue trading as is and we expect the administrators to be brought in within two weeks. A buyout by any other company will most likely not happen until the company is in administration as the price will be even lower.

Game have made some serious errors in terms of how their business operates and any takeover will undoubtedly see some major overhaul of the company. With American game giant Gamestop apparently waiting in the wings it is a case of watch this space over the next couple of days.

 

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