GAME has confirmed its intention to enter administration.
In a statement, the specialist retailer said its efforts to save the company had so far failed. "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 company said. "The board has therefore today filed a notice of intention to appoint an administrator."
GAME will, however, continue to trade in the short term as it seeks to save the business.
"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."
GAME Group had needed to raise £180 million by the end of the week to avoid slipping into administration. It's clear that was not possible.
Attention now turns to the soon to be appointed administrator, and the fate of GAME Group's assets, including its shops, Basingstoke HQ and online businesses.
Potential suitors include US giant GameStop and Comet owner OpCapita, but if the administrator fails to find a buyer, GAME and Gamestation could disappear from the high street.
Another option is a pre-pack administration, which would see the business continue under a new name and under the ownership of a third-party or the existing directors.
Administration protects GAME Group from legal action by creditors, but its lending syndicate, headed up by bank RBS, will be contacted to discuss the next step.