Mon, Mar 05, 2012 | 10:16 GMT
Daily Express: “Real risk” GAME directors may “pull the plug”
UK newspaper Daily Express is reporting that directors of troubled retailer GAME could “pull the plug” on the chain, citing several sources close to the situation.
It comes as last week, it was confirmed it was unable to stock upcoming EA titles this month, including the all-important Mass Effect 3 ahead of its launch this week.
It was also unable to stock The Last Story and Mario Party 9, as well as the Ubisoft launch line-up for PlayStation Vita initially.
“There is a real risk that GAME’s directors will pull the plug because they can’t be sure that the company can survive through the next trading season, and then insolvency becomes inevitable,” reads the Express’s report.
“They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses.”
Fellow sources close to one of the chains lenders, Royal Bank of Scotland, said it’d continue pushing for more closures, but it may be running out of time.
“The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don’t have products to sell,” it said.
It added: “RBS will be looking for the best way to secure its position or improve it. Suppliers pulling their products is a stepping stone to administration, but the problem for RBS pulling the plug is that it will be an expensive and complex administration because Game has 1274 stores across Europe and Australia.
“Lending banks will only want to consider a pre-pack administration, where there is a pre-arranged buyer, but who would want to buy GAME?”