News broke early this morning that GAME, the UK’s biggest video game high-street retailer, had its shares frozen on the London Stock Exchange.
A statement issued said “The Board now considers itself to be able to assess the business’s financial position,” and as a result GAME “has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading.”
Following on from which later in the day was the sad, but expected announcement that the company has now gone into administration. A statement to GAME’s shareholders read:
“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. The board has therefore today filed a notice of intention to appoint an administrator.”
This has been on the cards for some time now as GAME had been posting poor sales figures and struggled to compete with the modern trend of consumers opting for digital distribution rather than buying products off the shelf. Most recently, as was well publicised, GAME’s relationships with publishers such as Electronic Arts and Nintendo were strained as they could not agree terms on credit for selling their upcoming titles.
The announcement of administration just confirms what many already knew, that the company, which was once the hub of video game distribution, is in a dreadful state. Stores will stay open for the immediate future whilst the administrators decide on the company’s fate, be it refinancing or, most likely, closure.
