GAME going into administration !!

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#1 Wed, 03/21/2012 - 06:49
Kabar's picture
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Joined: 10/15/2011 - 00:00

GAME going into administration !!

 

Game Group heads for pre-pack administration, shares suspended

Game Group – the video games retailer – is preparing for a pre-pack administration that will see the company slim down to just 300 out of 1,300 stores.

 

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.

Game Group

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.

 

Wed, 03/21/2012 - 09:59
Walladog's picture
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Joined: 07/13/2005 - 23:00

 

 

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. :)

Thu, 03/29/2012 - 16:58
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Joined: 06/17/2005 - 23:00

http://www.mcvuk.com/news/read/game-to-exit-administration-tomorrow-rbs-...

 

Quote:

MCV has been led to believe that the GAME saga will come to a welcome close earlier than expected.

Sources close to the negotiations are certain that a deal to save the retailer is incredibly close, with a likely exit from administration as early as tomorrow (Friday March 30th).

Furthermore, multiple sources have told us that it will be the RBS-led bank consortium – and not GameStop or OpCapita – that will seal the deal.

Several reports from the national press last week suggested that RBS was the favourite to acquire GAME, though MCV remained sceptical owing to the complications presented by the idea of a majority public-owned retailer.

However, despite the recent downsizing of the chain that has seen 277 stores close and the loss of 2,104 jobs (40 per cent of the chain’s UK workforce) once-favourite GameStop has failed to show the appetite needed to seal such a deal.

Indeed, questions will likely be asked of RBS’ decision to outright reject OpCapita’s bid that would have safeguarded the jobs of the entire workforce, with accusations that the decision was made in its own favour at the cost of GAME employees.

On a more positive note, however, an exit from administration tomorrow will put the minds of remaining employees at ease whose jobs will be secured. It will also be good news for consumers, with GAME finally able to pick itself up and re-establish its place at the front of UK games retail.

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