GAME up for sale as company faces administration
GAME Group have reportedly put themselves up for sale having hired Rothschild to aid the retailer to find a buyer, according to The Sunday Times.
Unless landlords are paid rent within two weeks, GAME will be forced into administration placing thousands of jobs at risk.
Whilst GameStop are interested in the Spanish branches of the business, if the British stores were to be sold the company may have to go through pre-pack administration, with Deloitte ready to handle any insolvency process.
Yesterday morning saw GAME Group’s stock open at a ridiculously low 1.75p, soon falling even further to an all-time low of 0.5p.
Amidst mounting speculation regarding the ongoing situation, GAME Group were forced to issue a statement which is as follows:
“Further to GAME’s announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
“The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
“It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company”.