Troubled high street retailer GAME has suspended itself from the stock exchange – at its own request – because the board of directors feels unable to ascertain the company’s financial position and that there is little “equity value left in the group.”
The statement released by GAME reads:
“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. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.
“The Company will provide a further update in due course.”
With over £180 million in debt relating to staff wages, store rent, stock repayments and bank fees, GAME has a real uphill struggle that seems at this point, almost impossible. The one saving grace for the several thousand employees is if another firm can swoop in and buy up every outlet. However, with recommendations from banks that GAME close over half of its stores, it seems likely that even if some of the hinted buyers – Walmart, Hilco and OpCapita – do buy up some of the chain’s outlets, many will close and many staff will lose their jobs.
Started in 1991, GAME has been a staple of the UK video game market for over twenty years. It’ll be a sad day in the next week or so when it closes its doors for good, or is revamped into something different.