Following news that the OpCapita buyout may not be happening and reports that this week marks the company’s last stand, shares in GAME Group have crashed – and then rebounded again.
GAME Group has had a tough weekend that has continued their month from hell. The Guardian reported that a buyout deal with OpCapita had stalled, whilst The Sunday Times reported that the group had one week to raise £180 million – or face administration.
The market closed on Friday at 3.072 pence and then opened this morning at 2.5p – and then plummeted to 1.6p within minutes. The share price has increased steadily and significantly since then, appearing to level out at around 2.7p.
MCV reports that talks with suppliers and lenders continued over the weekend but a deal does not appear to be in sight for the retailer. Any package to save them from administration needs to be in place by the weekend.
Potential buyers include Wal-Mart, GameStop, Hilco and OpCapita, but all of these companies don’t necessarily want GAME’s complete portfolio of stores, warehouses and offices worldwide, which makes an absolute buyout more difficult to broker.
This week’s UK top 40 chart paints a grim picture – with the top five games in the chart not available from GAME Group locations.