UK’s GAME To Enter Administration
GAME, UK’s biggest video game retailer announced yesterday that it’s finally going to go into administration. This comes after a long downward spiral that began around the holiday season, where GAME’s revenues ended up being much less than they expected.
This is what GAME had to say after freezing its shares on the stock exchange yesterday: “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. The board has therefore today filed a notice of intention to appoint an administrator.”
So that’s it. GAME will be entering administration, which is similar to a Chapter 11 in the USA. They will appoint an administrator to oversee how the company’s future will play out, which can mean anything from refinancing, restructuring, or even closure, if the company is in bad enough shape. For the moment, the stores will remain open, but if you live in the UK and have a preorder through GAME, you might want to consider getting it moved elsewhere.
