British Retailer GAME Admits It's Worthless, Prepares To Enter Administration

After an extended struggle with finances that resulted in the year's hottest titles skipping store shelves, the GAME group prepares to enter administration, as the video game retailer's board accepts the fact that "there is no equity value left in the Group".

What could be the end for one of Europe's largest video game retailers comes as no surprise. In financial trouble for some time now, recently the once proud company had begun skipping out on big-name releases like Mass Effect 3, unable to negotiate terms with publishers wary of the retailer's shaky financial position. No one wants to commit large amounts of product to a company that could go under any minute, resulting in a sort of catch 22 situation for the retailer — they couldn't stock the games necessary to generate the revenue needed to stock the games.

In a release earlier this morning the GAME Group halted trading of its securities in the London Exchange.

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.

This suspension of trading notice was followed shortly by a notice of intent to appoint an administrator.

For our US readers, going into administration is akin to filing for Chapter 11 bankruptcy in the states. A court-appointed champion is placed in charge of attempting to rescue the company or, failing that, ensure the company's creditors recover as much of their investment as possible before the ship sinks.

In the case of the GAME Group, administration seems like a temporary stay of execution. I expect the company's remaining assets to be liquidated over the following weeks, followed by the sad death of one of Europe's great gaming institutions. Either that, or another game retailer will swoop in and swallow them whole.

Notice of Intention to Appoint an Administrator [The GAME Group]


Comments

    I thought it was because they were releasing games early and publishers were punishing them by not dealing with them.

    i work in game in australia and we get all our news from the internet about what's happening. we know as much as anyone. we want to know what's happening with our jobs....it's tough finding work here too. such a sad day. i should just shut up shop and go home, is what I feel like doing...

    I wonder how it's going to affect the australian stores? Any word on that Kotaku AU?

    So what does this mean for GAME in Australia? Will the be able to continue trading?

    Hmmm, every time i have tried to pre-order a game in "game" here in oz over the last 12 months i've been told they won't be stocking it or it's not on the system so this doesn't surprise me.

    Honestly, I've never seen Game in Australia as necessary. They seemed to enter the market which was already well catered for by EB, not really providing us with anything different to EB. I signed up for a Game card 3 years ago, and have not stepped foot in a Game store since. It will be interesting to see what happens to EB and similar stores if publishers start making it impossible to trade and re-sell games. I'm very worried for the retail side of gaming's future! Hopefully the new console generation (if it ever comes) will effect the market.

      They occasionally have better trade-in deals and pre-order bonuses than EBGames. They also have the very peculiar habit of re-shelfing unsold Collector's Editions for games well after release and quite cheaply. I bought several Collector's Editions for things like GTAIV for well under the same price for the standard edition a few months after it launched.

    so what's going to happen to those Diablo 3 preorders they've been trying to shove onto me every time I've browsed the shelves?

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