http://www.metro.co.uk/tech/games/89376 ... s-no-value
The situation for GAME is getting worse by the hour as it is delisted from the London Stock Exchange and the firm admits its shares are worthless.
Shares in GAME Group, the company that owns both the GAME and Gamestation chains, has had its shares suspended on the London Stock Exchange, meaning that nobody can buy or sell them.
As GAME itself predicted just over a week ago the value of the company has become essentially zero. Although it was never confirmed, multiple rumours over the weekend gave GAME just one week to raise £180million - or otherwise it would be unable to pay rental and wage bills.
Ever since Christmas GAME has been unable to stock major new titles, including Mass Effect 3, Street Fighter X Tekken, Ninja Gaiden 3, and Resident Evil: Operation Raccoon City. After disappointing Christmas results the company's credit insurance was pulled and many publishers refused to take the risk of sending GAME new stock.
The delisting from the stock exchange was at GAME's request, with the company issuing the following statement:
'Further to the announcements of 12 March 2012 and 14 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.'
The move is likely be an attempt to spur possible buyers into action. Private investment firm OpCapita, which recently bought electrical goods retailer Comet, is believed to be interested but will only make a move if the company actually goes bust - or perhaps comes as close as it has now.
US chain GameStop is thought to be in a similar position, and so up to now US retail giant Walmart, which also owns Asda, has seemed the most eager suitor. Whether this will change before or after GAME's one week deadline is up remains to be seen.
Looks like administration and/or a quick buyout is imminent. Either way the group could be split up.