'There Is No Equity Value Left In The Group'
Breaking news: Ailing high street retailer GAME has confirmed that they'll be entering administration after talks with bankers and stakeholders backers failed to bear fruit. They'll continue to trade in the short term in a last-ditch effort to raise the required capital to stay afloat, but the board has already filed for an administrator.
In light of their recent financial troubles, the GAME Group has also decided to suspend itself from the London Stock Exchange.
The latest statement makes for grim reading.
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,” a GAME statement reads.
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.
We wish the very best to GAME and Gamestation personnel in these troubling times.
This story follows a statement made earlier today in which the high street retail chain confirmed that they're "unable" to assess their current financial situation, and has taken steps to suspend itself from the stock market because the board sees "no equity value left in the group."
Further to the announcements of 12 March 2012 and 14 March 2012, 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. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.
The Company will provide a further update in due course.
Current rumours suggest that Gamestop or Currys parent company OpCapita may be interested in acquiring certain assets and stores. A new company may also rise from the ashes, taking over 300 stores with new branding.