Beleaguered GAME files for administration, Gamestation potentially sacrificed to forge new company
by Ben Abbott at 5:20 pm on Wednesday, 21 March 2012

After delisting themselves from the London Stock Exchange earlier today with the opinion that “there is no equity value left in the Group”, GAME has officially filed for administration.

In a statement made to shareholders earlier this morning, the retailer’s Board has indicated that its “intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium”. This decision comes as a result of the conclusion that the chain’s “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”.

An MCV report puts forward the notion that GAME could potentially abandon Gamestation and its overseas arm (with the exception of Spain) in an attempt to forge a brand new company after the administration process. The website quoted a source who claimed that a “GAME with 300+ stores is what we'll all get, which is basically where they should have been three years ago during the peak. There's no need for two, or even three, stores in the same town or city. They get a chance to reduce debt, keep trading and work out a plan for a new owner without so many financial and lease millstones around their necks.”

Our thoughts go out to all staff at the company.

Source: MCV
- Ben Abbott

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