Game Group shares halted, 'no value left' admits board
Game over for high street chain?
Retailer Game Group has inched closer to administration after requesting that its shares be suspended from the London Stock Exchange (LSE) as there is "no equity" left in the business.
Europe's largest seller of video games, which has 1,300 stores, also revealed it remains locked in discussions with suppliers and lenders over terms of trade.
The company announced in a statement to LSE:
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.
Shares in the retailer were 2.39 pence at the close of trading yesterday, up 0.01 pence.
According to reports in the FT (paywall), the firm is looking to close 600 of its stores across the region as part of its revised strategic plan.
There has been market talk that financial advisory group Rothschild has been trying to secure a buyer for the group with market talk that Comet-owner OpCapita and Walmart had expressed interest in the biz.
The group was given a reprieve by lenders last month after concluding negotiations with its lending syndicate, agreeing revised terms for banking facilities.
It confirmed it "remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate".
"While these discussions are ongoing, it has not been possible to source new products from a number of suppliers," Game added.
This include one of the supposed games of the year, Mass Effect 3, which Game confirmed weeks ago that it would not be stocking.
Channel sources claimed Game Group was very close to administration. ®