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Game enters administration as RBS mulls stake 26 March 2012

Royal Bank of Scotland is reportedly mulling a plan to buy a stake in embattled retailer Game Group now it has entered administration.

According to a report in The Daily Telegraph, the nationalised bank is considering a variety of outcomes including breaking up the group and selling the shops to the highest bidders.

There are around 6,000 staff jobs which are now at risk if a rescue deal cannot be agreed although mystery surrounds why Game’s lenders refused to accept a full-funded bid from OpCapita last week which could have prevented the company collapsing.

On Wednesday last week the company confirmed its intention to appoint an administrator saying that “its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business”.

While the company suspended its shares, the board confirmed its intention to continue to trade while discussions with lenders and third parties continued.

Game’s board also admitted last week that it was “of the opinion there is no equity value left” in the business.

Game had previously announced a third party – understood to be private equity firm OpCapita – showed an interest in providing “additional funding”.

 

 

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