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Game Group administration notice could kill OpCapita buy-out bid

22 Mar 2012

OpCapita’s bid to take over beleaguered video game retailer Game Group looks to have hit the buffers after the company admitted it was poised to go into administration.

The private equity firm was one of several linked with buying out the embattled company and said it was keen to preserve Game as a viable business.

But the potential deal appears to be dust after Game requested a suspension of trading in its shares yesterday and filed a notice to appoint an administrator.

The company admitted there was “no equity value left in the group” according to a report by the FT, which would make it the largest store chain to go into insolvency since Woolworths in 2008.

It said OpCapita’s offer had been conditional and that Game’s lenders, which include the Royal Bank of Scotland and Barclays, were not convinced the firm could provide a viable solution.

The company, which is the largest dedicated video games retailer by sales in Europe, hit crisis after big suppliers including Electronic Arts refused to supply the chain’s stores.

OpCapita purchased beleaguered electrical chain Comet last year for just £2, but it is though unlikely it will merge the business with Game if its purchase is successful.

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