GAME - Beleaguered Retailer Goes On The Market | Gamerillaz

GAME – Beleaguered Retailer Goes On The Market

GAME – Beleaguered Retailer Goes On The Market
 

According to a report in yesterdays (London) Sunday Times GAME is seeking offers for it’s stores. At the end of last week sources inside the company had indicated that the retailer had just over two weeks to pay landlords the rent on it’s stores with failure to do so meaning that the company which has recently entered it’s 21st year of trading would be pushed into administration.

The Times believes that Rothschild’s have been brought in by the company to seek out a buyer, while the auditors Deloitte are on stand by should administration be the final outcome. Gamestop is the most likely candidate to make a bid and may find themselves in a position to make a deal as GAME share fell to just 3.5p each, meaning the total value of the operation is currently valued at around £15 Million.

The company’s financial difficulties began with poor Christmas sales an later escalated to major publishers pulling credit lines on Triple A titles leaving the retailer unable to stock releases such as Mass Effect 3 and Street Frighter X Tekken.

At this time Gamestop have not issued any statement regarding their intent.

UPDATE: As world markets open GAME’s share price has drop to below 1p each. The company has issued this statement:

“Further to GAME’s announcement of 29th February 2012 and recent press speculation,” the press release says, “the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan.”

“While these discussions are ongoing, it has not been possible to source new products from a number of suppliers,” it continued, suggesting more stocking issues.

“The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.”

“It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company.”

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