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GAME: Potential buyer may wait until administration before making offer, says analyst

Monday, 12th March 2012 13:45 GMT By Johnny Cullen

A potential offer on GAME may come after its gone into administration, a UK analyst has told the BBC.

“We suspect that any potential suitor would prefer to wait for a formal administration process,” said Singer Capital Markets Mark Photiades.

“Through a pre-pack, the suitor would have much greater flexibility around store liabilities.”

It was reported this morning the retailer had put itself up for sale, confirming that it was looking at its UK and international assets. Share prices were at 0.5p, but have since rallied back a little, according to GI International.

Senior GAME staff were told last week to prepare for administration, with The Times reporting yesterday it had two weeks to pay rent

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11 Comments

  1. humanfish

    I find it a bit distasteful myself, these tid bits of information, the drip feed of news, a slow deathwatch.

    #1 2 years ago
  2. silkvg247

    @1 It can’t be helped. This is a gaming news site, and this is big news for gaming.

    #2 2 years ago
  3. Johnny Cullen

    @1 It’s as @2 said. This is big news and we have to report on it. If it’s any consolation, I don’t feel good having to write it up, seeing the way GAME is right now. But it has to be done.

    #3 2 years ago
  4. cloud_ix

    this sort of information is suited well to a blog style site like vg247. TBH i think we are all eagerly awaiting news about GAME like em or not.

    #4 2 years ago
  5. mickey2002

    Well IF GameStop do want to make a bid, why not wait untill they go into admin since they’ll get a better deal on their bailout bid. I can’t seem them buying it myself. They’d need a lot of spare cash for the invest to get down to actually making the company stable with profit. And how bad money is right now can’t seeing them taking such a big gamble.

    #5 2 years ago
  6. cloud_ix

    exactly, as soon as they go into administration they can pick the parts they want rather than the stupidity of 3 stores with a few 100 meters of each other.

    #6 2 years ago
  7. mickey2002

    @6 They need about 40% of the outlets they currently have.

    I have one GS down the road in Long Eaton (so like 10min drive) in Notts we have one GS, one GAME outside one of the two shopping centres (the GS is just a walk up that same street) and another GAME inside the other shopping centre (think we have a grainger games or whatever next to them thou so guess thats ok for comp) Overall decently placed just get rid of the GAME outside one of the shopping centres so then one game/gs in the city and got that one local GS (that seems to do well since don’t have to go park in town etc etc)

    I think Nottingham has the best case with outlets thou, (that GS in town is right outside all the bus stops etc) But even with that they have 4 outlets in one city.

    I bet other people could knock it down more sure theres tons of places with Two GAME’s on the same bit of road as each other like just no. -_- Even if staff are on lowest wage can be, surely overall overheads to profit on those stores even in boom time couldn’t be good thats just stupid, every store is let, too many staff (go into the outside shopping centre GAME and you’ll have 5+ people all saying can I help you. <_<) Yes I know that gives people jobs however I'd rather 7k people kept jobs secruity then have 10k all out of work.

    I don't want to see GAME go down on one hand (not nice to lose a job even more so with how things are today) but on the other I do with how badly they have treated everyone. Too much over heads, Brick and Mortar stores (because have so many) so their new release prices are 15% or more costly then else where to make up for the higher overheads and because of that price increase most people go elsewhere so there for no profit = bye bye. Dum ass's -_-

    (sorry if wording etc on any of my posts are crap, dyslexia is a.. <.<)

    #7 2 years ago
  8. mistermogul

    I fell out of favour twice with game after I was sold 2 DS games as new for full price only to get home and find out they had game saves on them!

    They refused to believe me when I took them back and I even wrote them a letter to which they fobbed me off with generic corporate BS.

    Bastards…

    #8 2 years ago
  9. cloud_ix

    @8 wow, i only ever got that shit when i used ebay. Which is why I NEVER use ebay

    #9 2 years ago
  10. freedoms_stain

    Game should think about shutting down almost all of their stores and condensing them into bigger better stocked units.

    One of the reasons I hate going in to Game is because the chances they’ll have what I want are slim and just going in to check means an uncomfortable squeeze through the other customers, and there don’t even have to be that many in for that to happen thanks to their retarded layout.

    Oh yeah, and have you ever had a look through their multi-buy deals and been unable to find 3 games you want in 1 store, but if the stock from 2 stores less than 5 minutes walk away from each other was condensed you could find your 3? and in a third store 5 mins in the other direction and you could find 6.

    #10 2 years ago
  11. BeLGaRaTh

    Bad idea to wait, look at what happened to one of the best developers in the UK, Bizarre Creations, they sadly were hoping for an “11th hour” buy out but nothing materialised, sadly a lot of my friends lost jobs due to this and had to mover out of the country to work.

    They (Game)should have took the gamestop offer a while back to take the EU/UK section and drop the AU sector. Sadly it is greed on behalf of the Game/Gamestation owners that has caused this.

    #11 2 years ago

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