The GAME Group entered into administration Monday after reports confirmed that the troubled retailer failed to find a buyer.
Speculation over the past weekend hinted that the group, owner of the GAME and Gamestation brands, could be saved by state-owned Royal Bank of Scotland (RBS). However, appointed administrators PricewaterhouseCoopers (PwC), released a statement Monday confirming the retailer was now in administration.
UPDATE: As suggested in Tuesday’s MCV report the GAME group has now been suspended from the London Stock Exchange, and has entered into administration. Game posted a statement on their corporate website reading:
Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business.
The Board now considers itself to be unable to assess the business’s financial position, and is of the opinion that there is no equity value left in the Group. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.
The Company will provide a further update in due course.
A report has suggested that the GAME group will enter administration this week with a view to restructure as a new company, without the Gamestation brand.
MCV’s account details that the troubled retailer is supposedly planning to voluntarily enter into administration procedures this week, resulting in the GAME group being removed from the London Stock Exchange. According to MCV following the administration process a new company would then be formed, funded by the firms current lenders. However, this new company would lack GAME’s many international locations and Gamestation stores.
UPDATE: It’s gone from bad to worse for GAME, as The Guardian has reported that the offer put forward by OpCapita has been rejected.
OpCapita had tabled an offer in which it would settle the struggling retailers debts with its main lenders, including The Royal Bank of Scotland who are owed £45m, and its supplies who are owned a combined £40m.
However it would appear that the offer was not acceptable as it was rejected outright.
UK gaming retailer GAME and its subsidiary Gamestation will not be stocking the recently released fighter, Tekken 3D: Prime Edition.
The game, which was released last Friday (February 17th), can not be found either in the retailers high street stores or on their websites. GAME confirmed to Eurogamer that the title will not be stocked in their inventory.
The news of HMVs troubles have been on the grapevine for sometime, with the HMV Group forced to sell Waterstone’s and their Canadian businesses within the last 12 months. However the firms troubles have become more evident following reports that the British-based retailer is to receive support from banks.
HMVs help comes in the form of an amended covenant package on its borrowings from the joint investors, the banks have also waived covenant test and will be re-tested when the retail group has more room for manoeuvre. For those who don’t work in finance, this means the banks have waived a series of tests on HMVs loans that will allow the group to continuing paying its debts.
News of hard-hit high street retailers tend to rear their head around the festive period and this Christmas time is no exception.
Last month sales of electronics, which encompasses video-games, were 0.4% lower in November than in October according to the Office of Statistics (ONS), adding to the hardship of high street retailers.