Troubled UK video game retailer Game Group today requested that its shares be suspended on the London Stock Exchange, while also filing for administration, Britain's equivalent of Chapter 11 bankruptcy in the U.S.
The retailer has seen a difficult couple of months. It was said to be "
reviewing a strategic plan" last month in light of credit issues, and shortly afterwards
had apparently struck a new deal with its lenders to allow it to continue operating.
However, as big-name publishers such as Electronic Arts revealed that
they would not be supplying the chain with high-profile games at launch, it became apparent that the original lender deals had fallen through.
It was reported earlier this week that if the company did not manage to raise enough to pay rent and wage bills by this coming weekend, it would be forced to enter administration. However, it said this morning that it has "not made sufficient progress" in raising these funds, and has now filed a notice of intention to appoint an administrator.
In the meantime, the group intends to continue trading and discussions with its lenders and creditors. It has also requested that the listing of its securities be suspended from trading on the London Stock Exchange immediately starting today, given that "there is no equity value left in the Group."
