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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.

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