Game on the brink after it says shares may have no value
Game Group is teetering on the brink of administration, putting 10,000 jobs at risk, after the troubled computer games retailer admitted that its shares could be worthless.
The group, which has nearly 1,300 stores globally, is locked in crisis negotiations with its banks and suppliers ahead of a massive, second-quarter rental payment which is due on 25 March in the UK.
Its most serious problem relates to three big suppliers, Electronic Arts, Capcom and Nintendo, who are withholding their latest products from Game amid grave concerns about the group's credit worthiness.
Game, which has 6,000 staff in the UK and 4,000 overseas, has suffered disastrous sales in recent months and made an estimated loss of £18m for the year to 31 January. If the group collapsed, it would be the biggest administration of a UK-listed retailer since Woolworths in November 2008.