Game to file for administration
The end is nigh for the struggling UK games retailer as shares are suspended and it announces plan to appoint an administrator.
After requesting its stock be removed from the London Stock Exchange this morning, the Game Group has announced it is calling in the administrators. While the firm will continue trading for the time being, job losses, store closures, and a financial hit for the firm's creditors are now all very likely.
The group's board said this morning that it was "of the opinion that there is no equity value left" and that delisting from the exchange was the only option. Game's share price had fallen drastically in the two years prior to the delisting. In March 2009 shares in the group were valued at 199.8p; at close of trading yesterday the group's shares were valued at 2.4p, a drop of almost 99 percent.
Following the delisting, the firm issued another statement. "Further to this morning's announcement of the suspension of trading in shares of Game Group plc," the statement read, "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.
"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," the statement concluded.