GAME Group is set to go into administration after the crisis-hit retailer admitted talks with stakeholders had stalled and that equity in the group was worthless.
The video games retailer, which employs 10,000 staff, requested that its shares be suspended from trading on the London Stock Exchange yesterday before filing its intention to appoint an administrator.
Game said in a statement: “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.”
PwC has been lined up as the group’s administrator. Game now has up to ten days to carry on discussions with lenders and other parties before administrators walk in.
Game’s 1,200 stores worldwide will continue to trade in the meantime.
The company’s woes escalated recently when major suppliers including Nintendo and Electronic Arts refused to sell their new releases to the video games shop.
Private equity firm Opcapita had tabled a rescue deal last week to buy Game’s debt from its banks, led by Royal Bank of Scotland, and pay suppliers’ outstanding £40m bills in full, but the deal was given the cold shoulder by banks. Game also faces a £15m rent payment on Sunday.