GAME GROUP, the video-games retailer that employs more than 10,000 people, said yesterday it intends to appoint an administrator to oversee the business after running out of time to implement a rescue.
Discussions to find “a solvent solution” had not made sufficient progress, the company said in a statement, after share trading was suspended. The business will continue to trade while talks continue with lenders and third parties.
In an earlier statement yesterday, Game Group said its board of directors was unable to assess the company’s financial position and believed there was no remaining equity value.
Game Group shares closed at 2.39 pence in London yesterday. They have fallen 96 per cent in the past year.
The retailer said last month it was having trouble securing new games, citing “isolated instances” in which suppliers did not agree to allow it to introduce individual titles. Game Group said at the time it would not stock some titles from Electronic Arts, and that the situation was temporary.
The company has more than 1,300 stores trading as Game or Gamestation. – (Bloomberg)
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)