Game Group files notice of intention to appoint administrator
The move has left 6,000 jobs at risk after rescue talks broke down.
Earlier this morning the group suspended trading in its shares and said it was of the opinion that there was no equity value left in the group.
In a second statement issued this morning the group said: "Further to this morning's announcement of the suspension of trading in shares of Game Group plc, the board has concluded that its 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.
"In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."
By voluntarily filing a notice to appoint administrators, thought to be PricewaterhouseCoopers, Game will have ten working days to safeguard its future before formally having to go into administration. It will also give the group more time to complete a deal with a potential buyer.
Game Group is reported to be trying to work out a rescue deal that is acceptable to its lenders with private equity firm OpCapita, the owner of Comet. There has also been speculation that rival video game retailer Gamestop might be interested in buying part of the Game Group in a number of countries including Spain.
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