Troubled British high street retailer GAME announced its plans to enter administration today, a somewhat similar process to bankruptcy in the US. The company has been struggling for months, following layoffs, store closings, rumored acquisitions, and several issues stocking the latest blockbuster games. The problems resulted in a 15 percent stock price drop in February after a leaked memo revealed the company's challenges and decision not to stock Mass Effect 3.
GAME announced today that its board sees "no equity value left in the Group" and asked the London Stock Exchange to delist it from trading on the exchange, before announcing its plans to enter administration. The British video games retail company has over 1,000 stores worldwide, but has struggled to compete against the rise of social online gaming and rival web retailers. Despite its intention to enter administration, GAME says "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."