The doomsday scenario of the possible demise of high street chain GAME appears more likely to happen today, after GAME Group requested its shares be suspended from trading. The board's discussions with lenders came to the conclusion that there's "no equity value left in the Group."
Which is a big business way of say it's run out of money and its overdraft is maxed out. The future for the chain still isn't decided, though. A move into voluntary administration might save some of the assets from being stripped and converted into pound shops, with news last night claiming that a new company could be formed to take on some or all of the existing stores under a new brand. [GAME via MCVUK]
GAME has now confirmed it's calling in the administrators, saying:
"Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its 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.
"The board has therefore today filed a notice of intention to appoint an administrator.
"In the short term the Board's 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."