This forum is in read-only mode for archive purposes, please use our new forum at https://community.justflight.com
Forum Home Forum Home > Just Chat > Just Chat - General Discussion
  New Posts New Posts RSS Feed - Game Group to file for administration
  FAQ FAQ  Forum Search   Events   Register Register  Login Login

Game Group to file for administration

 Post Reply Post Reply
Author
Message
MartinW View Drop Down
Moderator in Command
Moderator in Command
Avatar

Joined: 31 Mar 2008
Location: United Kingdom
Points: 26722
Post Options Post Options   Thanks (0) Thanks(0)   Quote MartinW Quote  Post ReplyReply Direct Link To This Post Topic: Game Group to file for administration
    Posted: 22 Mar 2012 at 9:47am
http://www.bbc.co.uk/news/business-17455742
 
Quote

Game Group to file for administration

Game%20Group Game says there is no equity value left in the business
    Struggling video games retailer Game Group has said it intends to file for administration.

Earlier, shares in Game were suspended "pending clarification of the company's financial position".

The firm said talks with stakeholders and other parties had not made enough progress to offer "a realistic prospect for a solvent solution".

Game has seen its business eroded by competition from online-only retailers, such as Steam and Amazon.

Last week, the retailer confirmed that a number of suppliers were refusing to do business with the company.

The group, which is headquartered in Basingstoke, has 1,300 stores worldwide, including 600 in the UK.

It said the business would continue to trade and discussions with lenders and third parties would continue.

'Over-expansion'

In an earlier statement on Wednesday, the firm asked for its shares to be suspended, saying the value of the company had been eroded.

Shares in Game closed at 2.39p on Tuesday, having fallen from 62p a year ago.

Game acquired GameStation in 2007, adding hundreds of new stores to its portfolio. Piers Harding-Rolls, head of games at IHS Screen Digest, said that with hindsight, this move could now be seen as over-expansion.

"Whilst it reaped the reward of this in 2008, when lots of content was sold thanks to new consoles and handheld devices, the packaged game market has since declined," he said.

But he added that there was still a place for a large specialist games retailer on the High Street, with 70% of spend on games content in the UK still in the form of physical media.

Back to Top
 Post Reply Post Reply
  Share Topic   

Forum Jump Forum Permissions View Drop Down