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Game enters administration

posted 26 Mar 2012, 10:53 by Mpelembe   [ updated 26 Mar 2012, 10:54 ]

The video games retailer Game has appointed PwC as its administrator, becoming the latest household name to fall by the wayside in a consumer downturn.

UK-GAME STORE - The video games retailer Game has entered administration, putting thousands of jobs in jeopardy.

PwC has been appointed as the administrator in a move the company says was taken after it failed to find a buyer for the business.

The firm employs 10,000 staff in 1,270 stores in nine European countries and Australia.

Six thousand of those jobs are located in the UK, where Game has about 600 stores.

A source familiar with the situation says Game's lenders, led by state-backed Royal Bank of Scotland, had 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.

Matt Cowan Reuters.