Following the recent developments of this morning (see below) CVG
confirm that GAME have officially filed for administration. Game Group have released the following statement:
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.Original Article
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.
The situation at GAME and Gamestation
has been a complex one, with many developments along the way
. To save from bombarding you guys with the same bits of news rehashed and repeated, we've tried to keep coverage succinct and stick to the key developments.
Today brings another milestone in the crisis as Game Group withdraws
itself from London Stock Exchange "pending clarification of the company's financial position". The management issued the following statement detailing their decision:
Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business.
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.
The Company will provide a further update in due course.
Worse yet? The bills are looming and fears grow for around 6000 UK jobs.
According to The Guardian
, Game Group faces a £21 million rent payment due on Sunday, a £12m wage bill at the end of March, plus an oustanding £10m in VAT and £40m to suppliers. Experts estimate anyone wishing to bail out the troubled company would require more than £100 million.
It is also being reported
that Game Group's main lenders, The Royal Bank of Scotland (a tax payer backed bank), rejected the terms and conditions of a rescue package laid out by private equity firm OpCapita. Game Group have indicated that "losses for the year to the end of January are likely to be around £18m".