Wed, Mar 21, 2012 | 07:23 GMT
Report – GAME bust within days, but ‘fourth way’ could save 300 stores
MCV reports that GAME will like go into voluntary administration before the weekend, but that a new, bank-funded chain with a different name could appear with 300 stores could be formed from the wreckage on Monday.
It now seems inevitable that GAME will go into administration before the weekend.
According to MCV, the is to be followed by the opening of a new company on Monday after the GAME Group is removed from the stock exchange.
UK and Spanish branches are the only ones affected, and “all other international operations” are to “cut off and told to fend for themselves”.
Store portfolios are to be reassessed and a store closure program implemented, resulting in the closure of Gamestation, “with the exception of a handful of well-performing stores.”
The company is to be bank-rolled, apparently, and should operate out of around 300 stores nationwide.
“They get a chance to reduce debt, keep trading and work out a plan for a new owner without so many financial and lease millstones around their necks,” said an MCV source.
GAME management have reportedly provided suppliers with four possible outcomes for the company after a consultation period between a financial specialist and GAME’s key suppliers.
The first option was refinancing, which has apparently been “ruled out entirely.” The second option was to look for a White Knight investor; as the deadline for fixing the situation is Sunday’s, this is now extremely unlikely.
A third option is administration and shutting down entirely on Monday – a possibility still on the table. However, as noted above, it looks as though the fourth option of safeguarding a large proportion of the chain’s UK workforce will be put into place with a round of bank funding.
All eyes will be on GAME over the weekend.
13 comments
#1
AHA-Lambda
20/03/12, 7:34 pm
“two, or even three, stores in the same town.”
I’ve got fucking SIX, yes 6, in mine!!! You wonder why they’re in fucking trouble!
#2
Hunam
20/03/12, 7:39 pm
Why the hell do you need 6 of them?
#3
xino
20/03/12, 7:42 pm
just farking close down man so i can buy 360 for £5, vita for £10 etc lol:P
GAME store are greddy man, they have 3-4 stores in same area!
2 or 3 stores in shopping centre
#4
KAP
20/03/12, 7:42 pm
Wanna hear something funny, I got a week off this week..
I wonder if I got a job to go back to come Monday.
#5
LOLshock94
20/03/12, 7:53 pm
i have 5 stores in my town haha
#6
AHA-Lambda
20/03/12, 7:53 pm
i wanna see if anyone can beat me now XD
#7
freedoms_stain
20/03/12, 8:23 pm
@6, anyone who lives in London.
#8
AHA-Lambda
20/03/12, 8:31 pm
damn of course XD
#9
Gama_888
20/03/12, 9:18 pm
Closing down Sale orta be pretty awesome
#10
freedoms_stain
20/03/12, 9:32 pm
@9, from what I hear their stock is pretty damned thin at the moment, what’s on the shelves is what they got and they’re not getting any more. So unless you have need of thousands of copies of second hand FIFA titles from 07-11 then you might be shit outta luck.
#11
xino
20/03/12, 9:56 pm
@9 that is what we are all waiting for:)
@4
of course you don’t have work next week.
you better start looking for a new job….OH WAIT 2.7 million people are currently jobless.
to add to rise in travel fair, food, petrol, insurance etc.
i guess this world is on a path to destruction.
EVERYBODY end of the world is coming soon…To Be Announced:)
#12
STEGUINO
21/03/12, 8:20 am
6 local to me.
#13
nikk900
21/03/12, 8:37 am
I love how everybody thinks they will get really cheap consoles. A guy came into the gamestation where I work and asked if he could have a 250gb xbox 360, 2 pads and fifa 12 for £100. He said we should give him free stuff because we’re closing down.
People seem to forget, if we close down, the staff are gonna have everything. I have loads of stock sitting in the back ready for me, when we close, and why shouldn’t I, I’m dealing with all this shit from customers who think it’s my fault they can’t get mass effect ect. I was more gutted about mass effect than anyone as I had been given £50 in points, and my discount would have meant I got the game without paying a penny.