Game Group shares fall 70% on administration fears

Computer games retailer Game has warned investors that their shares could be worthless as it struggles to source new products from suppliers, causing shares to plummet by over 70 per cent in early trading.

The group, which trades from about 1,270 stores in nine European markets and Australia, said this morning it remained in talks with suppliers and lenders in relation to terms of trade that allow it to operate within a banking facility agreed last month.

It is reportedly struggling to pay a substantial rent bill that is due within the next fortnight.

Game said it was working to resolve the supply issues as quickly as possible.

But it warned investors: "It is uncertain whether any of the solutions currently being explored by the board will be successful or will result in any value being attributed to the shares of the company."