Game Group to head into administration, hopes to continue trading.

March 22, 2012

The board of The Game Group has voluntarily suspended trading on the London Stock Exchange, and will appoint an administrator to manage the company’s affairs. The board believes that the company no longer has equity value, with over £180 million (AU$270 million) in debts.

The company is now expected to close more than half of its 600 UK stores, with the future of its international operations (including here in Australia) uncertain. There have been several rescue attempts, the most notable from equity firm OpCapita, who have had past success in rescuing UK-based electronics retailer Comet from bankruptcy.

American retail firm Gamestop has also shown interest, however the overlap between Gamestop’s own EBGames brand and Game’s Australian stores has been a sticking point for any buyout. There is also an offer for Game’s Spanish and Australian operations from Hilco.