Internet shopping and the rise in digital downloads have claimed their latest victim: European retailer GAME Group — which owns the GAME and Gamestation stores littered across the U.K. — has entered administration, its board has confirmed today.
In total, GAME has 1,270 retail outlets across Europe and Australia, but the company has been struggling for months, failing to secure some of this year’s biggest releases, including Mass Effect 3 and other EA games, and PS Vita launch titles from Ubisoft.
Around a week ago, the board informed shareholders that “it’s uncertain any of the solutions […] being explored by the board will be successful,” causing its share price to tumble by a whopping 71%. At one point, you could purchase shares in the company for just 0.3p (approx. 0.48 cents) each.
This morning, GAME withdrew itself from the London Stock Exchange, and hours later its board released a statement to confirm that it has called in the administrators:
“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.
“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.”
GAME has previously attracted interest from companies like Walmart and GameStop, according to reports. But a takeover deal is yet to come to fruition.
I’m a little sad to see GAME go into administration. It’s one of the U.K.’s few retailers that focus solely on video games and consoles, and it would be a shame for it to disappear from British high streets.
How do you feel about GAME going into administration?