We haven’t had an official announcement but UK investment advice website, ADVFN has listed a Notice of Intention to appoint an Administrator.
This is further to the earlier announcement that the group was suspending shares from the London Stock Exchange and is a measure to protect the company investors from hostile creditors.
The statement, apparently issued by Game Group PLC. themselves, reads:
Further to this morning’s announcement of the suspension of trading in shares of GAME Group plc, 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.
The board has therefore today filed a notice of intention to appoint an administrator. In the short term the Board’s intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium.
As far as I’m aware, this notice gives the group ten business days to appoint an administrator while under certain legal protections from their creditors but if no administration officer is appointed, they can reapply and remain under the protection of this “interim moratorium” which prohibits the repossession of goods, landlords forfeiting a lease and any legal proceedings against the company.
Obviously, our thoughts are with those who are employed by the company and the uncertainty they now face. Best of luck to all involved.
Source: ADVFN Thanks, iiekka