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GAME suspends trading of its shares on the stock exchange

Board feels "there is no equity value left in the Group".

GAME has suspended the trading of its shares on the London Stock Exchange.

In a statement, the embattled high street shop said its board had come to the decision that GAME had no equity value left.

"Further to the announcements of 12th March 2012 and 14th 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 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."

GAME Group needs to raise £180 million by the end of the week to avoid slipping into administration. That includes a £21 million rent payment due this weekend, a £12 million wage bill at the end of the month, £10 million in VAT and £40 million owed to suppliers. Any new investor would also have to pay GAME's banks £100 million.

An offer from private investment firm OpCapita, owner of Comet, swooped in with a firm offer last week, but it was held up by the Royal Bank of Scotland, one of GAME's lenders, which is said to want to cut its losses.

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Wesley Yin-Poole avatar

Wesley Yin-Poole

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Wesley likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

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