by Anna Roberts
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?