UPDATE: Opcapita to rescue Game Group and save 333 stores
The investment group, Opcapita, has announced it will buy a large part of the troubled Game Group out of administration, the BBC reports.
The deal will keep open 333 stores and save 3,100 jobs.
Half a dozen banks, led by Royal Bank of Scotland, who are owed £85m, have approved the takeover, says BBC business editor Robert Peston.
Last week Game's administrators closed nearly half the chain's stores.
Administrators have confirmed that a total of 277 Game and Gamestation stores have been closed today, out of a total of 609 stores in the UK and Ireland. And 2104 staff have been made redundant, accounting for 40 per cent of the workforce.
It's hoped the remaining stores can be saved as the administrators seek a buyer for what's left of the company.
But Game has also suspended all refunds and exchanges, as well as the use of reward and gift cards, and its click-and-collect service.
Troubled computer game retailer Game has filed a notice of intention to appoint an administrator after suspending its shares this morning, reports Retail Week.
Its stores will remain open for the time being, and Game says it continues to trade while discussions with its lenders continue.
Game says: “Further to this morning’s announcement of the suspension of trading in shares of Game Group plc, the board has concluded 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.
“The board has therefore today filed a notice of intention to appoint an administrator.
“In the short term the Board’s intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium.”
A rescue package from Comet-owner OpCapita was rejected by Game's banks last week.