GAME has filed for administration today after weeks of trouble, after trouble, after trouble. Essentially, the company seeks to find an administrator to try and help get the company back on track again because, as the board said, “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.”
This follows the only hours old news that the board at GAME asked to be suspended from the London Stock Exchange because they are, “Of the opinion that there is no equity value left in the Group.” Essentially, GAME has been going under all along despite their constant nuh-uhs and finger-plugging “lalala I can’t hear what you’re saying” counterarguments.
It’s worth noting that filing for administration in the UK is similar to filing for Chapter 11 Bankruptcy in the US, there is no concept of debtor in possession; the properties of GAME are in limbo for the time being and not controlled by the company.
Of course, the chances for the video game retailer to recover its previous business model are slim-to-nil after its troubled previous year and disappointing Christmas sales. MCV acquired information yesterday that basically unveiled the plan for GAME: file for administration, close down a bunch of stores, end the Gamestation name, and then hope for profit. Hilariously, GAME still fought back against that. At the very least, they’re scrappy.
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