Vidgame retailer seeks protection from creditors
Video games retail chain Game Group was suspended from trading on the London Stock Exchange Wednesday, and is set to enter administration, the U.K. version of Chapter 11.
Earlier this month the group had sought a third party to provide additional funding, but had failed.
A statement on Wednesday said: “The board now considers itself to be unable to assess the business’s financial position, and is of the opinion that there is no equity value left in the group.”
The company’s pre-tax profits fell to £23 million ($36 million) in 2011, down by 73% from the previous year, in contrast to its revenue drop during the same period of only 9% — falling to £1.6 billion ($2.5 billion.)
Game employs over 10,000 staff. Its 1,300 stores remain open.