The specialist retailer Game Group has confirmed today that it will enter administration after failing to find a buyer. The company, which is the largest dedicated video games retailer in Europe, faces a £21m rent bill and around £180m of debts.
The news will make grim reading for the company's 10,000 staff who work in the chain's 1,270 shops in the UK and Europe. Administrator PwC will reportedly announce the closure of unprofitable stores before attempts are made to sell the business. PwC are expected, however, to honour £12m of outstanding wages which are due at the end of the month.
Game's collapse follows a series of profit warnings, which led to suppliers including Nintendo and Electronic Arts refusing to provide new stock. The group's shares fell from 70p at the start of last year to less than 1p before trading were suspended last week, with acompany spokesman admitting "there is no equity value left".
Potential buyers include a consortium led by Royal Bank of Scotland, private equity firm OpCapita and the US video games retailer Gamestop. OpCapita, which bought the retail chain Comet for £2 in 2011, tried to purchase Game last week but had its bid turned down.