Game Group goes into administration
Game Group has gone into administration after failing to find a buyer. The collapse of the video game and console retailer has put 6,000 jobs at risk.
It has been reported that the Royal Bank of Scotland is working with a group of lenders on a rescue package for the group. The RBS consortium is also believed to be planning to put Game’s existing £85 million debt into a new company and to reduce the number of stores.
Other companies interested in buying Game include rival games retailer Gamestop and investment firm Opcapita, which recently bought electrical retailer Comet. OpCapita has already made an offer to purchase the group but this was rejected.
Game Group, which has been struggling with £180 million of debts and faced a £21 million rent bill for the upcoming quarter at the weekend, announced its intention to appoint administrators last week.
Although administrator PwC is expected to announce the closure of Game’s loss-making stores, it is anticipated that they will honour the £12 million worth of salaries due to Game employees at the end of the month.
