[UPDATE] UK retailer Game files for administration

Company will 'continue to trade'

[UPDATE] UK retailer Game files for administration
| GAME news

UPDATE: Since the original story went live, Game has announced it has filed for administration. "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," said the statement, published by MCV. "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."

Original story follows:

After a week of buyout rumours aplenty, UK retailer Game has moved to delist itself from the London Stock Exchange, suspending the company from trading with immediate effect.

The Game Group has said the decision was taken because it found itself unable to determine the value of the company in the midst of "ongoing and regular discussions between Game and its lending banks".

Stopping the stock

The troubled retail chain, which boasts 1,300 stores worldwide - almost half of which are in the UK, said its lending banks are continuing to talk with a "potential third party provider of finance to the business".

However, MCV reports a buyout offer tabled by Comet owner OpCapita has been turned down by Game's lenders.

"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," the firm said in a statement.

"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."

[source: Game]

Keith Andrew
Keith Andrew
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font. He's also Pocket Gamer's resident football gaming expert and, thanks to his work on, monitors the market share of all mobile OSes on a daily basis.