Report: GAME staff told to prepare for administration
Intervention from a buyer could now be chain's only hope
A report has surfaced claiming that senior GAME Group staff have been told to prepare themselves for administration, with a buyout from Gamestop or another large investor said to be the final hope for the struggling chain.
The retailer has apparently been given a fortnight to put its business in order before administrators are called in.
The story, sourced by MCV, appears to confirm many of the recent rumours circulating around the GAME group's current position.
GamesIndustry International has also heard sources speaking about the near-inevitable nature of administration, as well as the courting of GameStop as potential buyers.
GAME's situation has been under consumer and press scrutiny for weeks, but the incredible cut-price sale of stock unveiled officially today inflamed the situation, as have repeated rumours and certified reports of stock issues and credit agreements with publishers.
Whatever remains now, it's unlikely to be pretty. The Group's share price has dropped by almost 15 per cent again today at the time of writing, from 4.67 at the market's opening, to 3.87 currently.
GAME has been contacted for comment on the situation.

If true, I hope that this is not the way the staff on the ground are finding out. I also hope this doesn't start a knee jerk reaction of ignorant blogs by some of the industry who suffered on the wrong side of the negotiating table at some time and feel they have finally got retribution. Game offered a unique high street experience for gamers which, if we're lucky could be replaced by a similar operator but if not will leave a massive hole. If nothing fills its shoes, then developers/publishers will be working late to find a way to get their packaged goods in front of the weekly 3 million UK consumers who walked over Games thresholds. I'd like to think that the independents, small accounts and even HMV will pick up the slack but I fear it will be the supermarkets and online retailers who will benefit the most and consequently, welcome to the wild west. Is the grass greener?
Posted:A year ago