Tech & Biz

Game on the brink after it says shares may have no value

by liamssoft | March 12, 2012 at 11:18 pm

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Game Group is teetering on the brink of administration, putting 10,000 jobs at risk, after the troubled computer games retailer admitted that its shares could be worthless.

The group, which has nearly 1,300 stores globally, is locked in crisis negotiations with its banks and suppliers ahead of a massive, second-quarter rental payment which is due on 25 March in the UK.

Its most serious problem relates to three big suppliers, Electronic Arts, Capcom and Nintendo, who are withholding their latest products from Game amid grave concerns about the group's credit worthiness.

Game, which has 6,000 staff in the UK and 4,000 overseas, has suffered disastrous sales in recent months and made an estimated loss of £18m for the year to 31 January. If the group collapsed, it would be the biggest administration of a UK-listed retailer since Woolworths in November 2008.

http://www.independent.co.uk/news/business/news/game-on-the-brink-after-it-says-shares-may-have-no-value-7563369.html

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liamssoft

at 11:06 on March 21st, 2012

I cant see things picking up for Game. The competition with online and supermarkets, who have access to the latest and best selling games, which Game do not have has left Game with stores full of games that nobody wants at any price. Public buyers are not buying anything except whats essential due to the high cost of living, very high taxes and very low economic moral. I am sorry to see them go from flagship to Titanic..

It has been reported that Game faces a £21 million rent payment due on Sunday 25th March and a £12 million wage bill at the end of the month, and owes more than £10 million in VAT and £40 million to suppliers. A new investor would have to pay up to £100 million to Game's banks.