UK games retailer GAME has filed for administration after weeks of uncertainty about its financial woes.
It said in a statement: "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."
It is now likely that its assets will be split. It’s a possibility that some of the stores will survive as another venture. Many, of course, will be closed.
Some suppliers and other retailers watching this all unveil will no doubt be making plans to pick up some of these assets. Expect a lot more news to come out of this over the coming weeks.
You can read the full story about GAME going into administration over on sister site MCV.
The whole sorry story simply points out how hard it is for retailers succeed at selling content that can now be bought and/or streamed online. If they want to survive, they have to recognise any potential problems quickly and move to change.
HMV, for example, seems to have turned things around somewhat after realising that it could benefit from offering more consumer electronics. GAME has not been so lucky. Our thoughts are with its staff.