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GAME Group officially enters administration

Decision made after "ceaseless interrogation of every possible alternative"

GAME Group has officially appointed PricewaterhouseCoopers as its administrator.

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The firm said in a statement this morning: "Further to our announcements of 21 March, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC LLP to act as administrators for the Group.

"This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism."

Reports over the weekend claimed a consortium of GAME's lenders led by Royal Bank of Scotland has tabled a bid to buy the company out of administration. According to The Sunday Times, the consortium is planning to roll existing GAME debt of £85 million into a new company with a smaller chain of stores.

PWC is expected to begin the administration process by quickly selling off underperforming GAME and Gamestation stores, leading to a number of job losses - the firm has 610 UK outlets and around 6,000 staff. The remaining stores are set to be replenished with stock to form the backbone of a profitable company that can be sold.

US retailer GameStop and private equity firm OpCapita are also expected to bid for what remains of the firm's UK operations following administration.

EA UK managing director Keith Ramsdale said last week that he expects GAME to bounce back from its current troubles and retain a High Street presence following its administration process.

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