Video-games retailer Game Group will enter administration, saying its discussions with stakeholders and other parties “have not made sufficient progress” to make the business viable in the short amount of time needed to do so.
In a statement, Game Group said it had been in talks with stakeholders to try and offer “a realistic prospect for a solvent solution for the business.” However, it said it has not made enough progress to do so in time.
As a result, its board has filed a notice of intention to appoint an administrator for the business. Game Group’s GAME and Gamestation stores will continue to trade in the short term and it will continue discussions with lenders ‘under the protection of the interim moratorium.’
The video-game retailer, which has 1,300 stores globally, has been struggling recently, expecting a stg£18m loss for the year ending 31 January. Its shares dropped to 1p earlier this month and just this morning, it was suspended from trading, as Game Group believes its business has no equity value left.
Along with these losses, Game Group also had difficulty stocking a number of new games from different publishers, including Mass Effect 3, which has become the highest-selling game in the UK this year so far.