Failed video games retailer Game Group has announced today that it has officially entered into administration after no deal to save the business could be found.
Last week the business, which operates the Game & Gamestation store chains, confirmed that it intended to hire administrators shortly after withdrawing from the London Stock Exchange as its shares became worthless.
Professional services firm PricewaterhouseCoopers (PwC) has been appointed administrator for the company and will now look to realise assets of the business to pay off debtors and look for potential buyers for the firm.
It is likely that as many as half of the 600-odd UK stores run by Game will be considered for closure, though PwC will hope to secure a acquisition of the remaining business in order to maintain it as a going concern.
A statement from Game today read: “Further to our announcements of 21 March, the board of Game has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PwC LLP to act as administrators for the group.
“This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The board would like to thank the teams of Game and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism.”
Around 10,000 people are currently employed by Game across its 1,300 stores worldwide, with more than 6,000 staff members working in the UK.
Administration was brought about through Game being unable to agree terms with its suppliers which would have supported its newly agreed terms with its lenders.
Mass migration of trade online and to supermarkets decimated Game’s business model, with the retailer’s losses for the last financial year in the region of £18 million and its net debt as of September standing at £92 million.