Administration nears for Game Group

Accountancy giant PwC is to be formally appointed as administrator. The retailer's six lenders, led by Royal Bank of Scotland, are understood to remain hopeful that some form of a rescue deal may be reached for the 600-shop chain. It is understood that talks are currently focused on a slimmed-down version of Game being sold to either OpCapita or GameStop, with the rest of the shops being placed into a company voluntary arrangement. Another option is that Game will be broken up, with a fire sale of shops to the highest bidders. Hilco, the restructuring specialist, is thought to be interested in some of Game's international assets. Last Wednesday, Game said that it had filed a notice of intention to appoint an administrator, having earlier admitted there was "no equity value left" in the company's shares. Game breached banking covenants at the start of the year. It became clear at the start of last week it would not be able to meet its quarterly rental payments due today.