British high street fixture Sports Direct has made a bid for Game, the UK’s brick-and-mortar videogames retailer. If it succeeds, it’ll look into closing or consolidating some of Game’s existing stores.
The two companies already have close ties – the potential purchase has been triggered by an increase of Sports Direct’s already significant stake in Game to 38.5%. The company intends to work with Game management to review its current strategy of “repositioning and right sizing” the business.
“In particular, the review will focus on whether the existing Game sites should be consolidated with others in the Sports Direct Group, re-purposed or closed,” Sports Direct says, “including by looking to consolidate Game sites into Sports Directs and open Belong stations and arenas.”
Belong is an existing collaboration between Sports Direct and Game, consisting of event spaces designed for competitive gaming and esports. If the sale goes ahead, more of those are likely to crop up in Sports Direct and House of Fraser, the department store the company bought just last year.
“Sports Direct does not believe that, as a standalone business, GAME is able to weather the pressures that it is facing,” the company says.