The business, which employs 10,000 people, suspended shares this morning after saying there was no more equity value left in the company. Game has been hit by a slow down in the High Street and gamers increasingly turning to supermarkets and online stores like Amazon to buy new videos.
The company is appearing in court at 10am to request an administrator be appointed – expected to be Mike Jarvis of PwC.
By asking for a voluntary administration, Game will create a 10 day moratorium, which will protect it from creditors without formally going into administration.
The limbo period will give PwC the chance to complete a deal with a potential buyer. US retailer GameStop and turnaround funds OpCapita and Hilco are amongst the bidders. Game has 600 stores int he UK and the rest overseas. Rothschild has been helping to fund a buyer.
OpCapita, which last year bought electrical goods company Comet, has raised concerns in the past becuase of the charges it applies to companies it takes over. Sources say this leaves them more vulnerable to going into administration.
Take a look at my editorial on Spotted Dick, http://www.2old2play.com/news/editorials/grumpy-gamer-spotted-dick-and-dating, I cover some of this issues here...as well as how it relates to internet dating. :)
http://www.mcvuk.com/news/read/game-to-exit-administration-tomorrow-rbs-...