Game enters administration

LONDON Mon Mar 26, 2012 3:27pm BST

1 of 2. A sign outside a Game store is seen in central London March 26, 2012. Struggling British video games retailer Game said on Monday it has entered administration, becoming the latest household name to fall by the wayside in the consumer downturn.

Credit: Reuters/Stefan Wermuth

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LONDON (Reuters) - Struggling video games retailer Game said on Monday it has entered administration, becoming the latest household name to fall by the wayside in the consumer downturn.

The firm, which employs 10,000 staff in 1,270 stores in nine European countries and Australia, said it has appointed PwC as its administrator after failing to find a buyer for the business.

"This decision is taken after careful consideration and ceaseless interrogation of every possible alternative," Game said.

Game has about 600 stores in the UK, employing about 6,000.

Last Wednesday, Game filed a notice to appoint an administrator, hours after it declared its shares worthless and suspended their trading.

On the same day, a source familiar with the situation said Game's lenders, led by state-backed Royal Bank of Scotland, rejected an offer from private investment firm OpCapita to buy the retailer's debt and pay suppliers even though it had the support of suppliers for the plan.

Analysts also believe U.S. rival Gamestop could be interested in some of Game's stores.

(Reporting by James Davey; Editing by Adveith Nair)

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