Struggling video-game retailer Game Group has confirmed it is in discussions with suppliers and lenders to allow it to keep trading and is reportedly preparing for a sale or even a pre-pack administration as its share plunged below 1p.
Game Group, which owns the GAME and Gamestation stores, released a statement on the matter, saying it was having on-going discussions with suppliers, was seeking alternative sources of funding and was reviewing the position of all of its assets in the UK and around the globe. The Sunday Times reported it was also preparing to sell itself or for pre-pack administration.
“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,” the company wrote in the statement.
On Monday, its stock opened at 1.75p before plummeting to 0.75p a few minutes later.
The retailer has been struggling recently, expecting a stg£18m loss in the year to 31 January 2012.
It was also unable to stock new titles from certain publishers, including Mass Effect 3, which became the UK’s highest-selling game so far this year, selling more than both of its prequels combined in their opening weekends. In its statement, Game Group said that while discussions were ongoing, it has still not been possible to source new products from a number of suppliers.
Video-game retailer GameStop is rumoured to be interested in buying GAME and Gamestation stores, though it may only want retail outlets in certain regions. Game Group has 1,300 stores under the GAME and Gamestation brands across Europe.