After months of financial trouble, GAME group has announced its intention to enter administration. The video games retailer, which also owns Gamestation, needed to raise £180 million by the end of this week to avoid administration, but has acknowledged that this attempt was futile.
The press release states:
…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.
GAME’s entry into administration came after a suspension of the trading of its shares earlier on Wednesday.
The stores will remain open for business in the short term. GAME group still hopes to attract a willing investor. However, it appears unlikely that traditional high-street video games retailers have much of a future as digital copies of games, bought through services like Steam and Origin, are becoming more popular. Without GAME and Gamestation, HMV will be one of the only high-street shops in the UK which continues to sell video games – and their finances are far from rosy, either.
Do you think that GAME will find an investor? Is their closure inevitable given the dominance of Steam and Amazon?
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