GAME Group Delisted from London Stock Exchange as Last-Resort Rescue Plan Emerges
Gamestation to be sacrified, stores cut down - but is delisting part of the plan?
GAME Group has been delisted from the London Stock Exchange this morning. According to a report in MCV, it's all part of a new plan that involves sacrificing the Gamestation chain and jettisoning nearly all of its international stores in a dramatic last-resort effort to save the company.
Talks with GAME Group and key suppliers have resulted in several possible outcomes for the company, which faces administration on Monday if it cannot secure adequate backing to pay off debts owed to multiple lenders.
This bold new plan, published by MCV last night, suggests that GAME Group would enter into voluntary administration, followed by the opening of a brand new company from GAME's self-destroyed ashes. It would save a number of jobs as well as 300 existing stores.
The side effects of this plan are as follows: Gamestation would close, its portfolio of over 600 stores would be severely cut, and international stores in Australia, France, Portugal and Scandinavia would be left to "fend for themselves." The 'new GAME' will only have a presence in the UK and Spain.
Of course, the delisting from the London Stock Exchange could be the result of an outcome that nobody really wants to hear - that the retailer has not found a solution to its debt problems and is about to declare itself bust. The full statement from GAME on its delisting is below.
"Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business.
"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 ofLondon Stock Exchange plc be suspended from trading with effect from 7:30am today.
"The Company will provide a further update in due course."
Source: MCV
Talks with GAME Group and key suppliers have resulted in several possible outcomes for the company, which faces administration on Monday if it cannot secure adequate backing to pay off debts owed to multiple lenders.
This bold new plan, published by MCV last night, suggests that GAME Group would enter into voluntary administration, followed by the opening of a brand new company from GAME's self-destroyed ashes. It would save a number of jobs as well as 300 existing stores.
The side effects of this plan are as follows: Gamestation would close, its portfolio of over 600 stores would be severely cut, and international stores in Australia, France, Portugal and Scandinavia would be left to "fend for themselves." The 'new GAME' will only have a presence in the UK and Spain.
Of course, the delisting from the London Stock Exchange could be the result of an outcome that nobody really wants to hear - that the retailer has not found a solution to its debt problems and is about to declare itself bust. The full statement from GAME on its delisting is below.
"Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business.
"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 ofLondon Stock Exchange plc be suspended from trading with effect from 7:30am today.
"The Company will provide a further update in due course."
Source: MCV
Companies:
Game
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