Game Group has today collapsed into administration, leaving landlords with a potential £21m unpaid rent bill.
PwC has been appointed administrator of the Basingstoke-based video games retailer, which has 609 stores in the UK and Ireland.
The appointment comes five days after the group filed a notice of intention to appoint an administrator, and suspended trading of its shares on the London Stock Exchange. The move meant Game could postpone paying its quarterly rent bill
Royal Bank of Scotland is leading a banking consortium that is proposing a rescue bid for the firm, including streamlining its store portfolio. Bids could also come from Gamestop and OpCapita.
PwC said: “The group has faced serious cashflow and profit issues over the recent past. It has also suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.”
Game Group, which recorded a £1.6bn turnover in the year to 31 January, will continue to trade while a buyer is sought for the business.
joanna.bourke@estatesgazette.com
