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Game in administration

Not exactly the most unexpected of news stories, but the “biggest retail failure since Woolworths” has been announced today
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/9166190/Rescue-hope-for-Game-Group.html

The usual reasons for the business failure have been cited (online competition, international expansion) and once again the question marks hang over a high street chain with heavy overheads competing against an online retailer. I have barely ever played a computer game but do you need to visit a store to chose one?

Either way, perhaps the most interesting quote in the above article is this

However, people familiar with the matter have been left puzzled over why Game’s lenders refused to accept a fully-funded bid from OpCapita last week, which would have prevented it from falling into administration.

I think unsecured creditors will be asking that question quite forcibly. But what voice do they now have? It can of course be argued that any creditor should have been well aware of the risks in advance, but that doesnt lessen the pain…

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