Wednesday, 14 March 2012

Game News: Game UK is up for sale?

Strong rumours are floating around that Game have hired Rothschild (A financial advisory group) to find a potential buyer to buy off the company. This seems to be the case because Game are due to pay their landlord in two weeks and if they fail to pay in time there is a possibility of  the lose of 1000's of jobs According to The Sunday Times.

This wouldn't be a shock as Game has been struggling as of late. Especially after Game failing to stock the most anticipated game of the year Mass Effect 3 and a handful of other titles.

Reports last week say that the US retail gaming Juggernaut Gamestop (EB Games) are interested in purchasing Game.

Game issued a press statement last Sunday.
"Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3rd February 2012, and to meet its revised strategic plan. While these discussions are on-going, it has not been possible to source new products from a number of suppliers.

The Board of GAME is working actively to resolve these issues as quickly as possible. This includes on-going discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.

It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company."
Game don't seem very confident that they will be able to overcome these issues. On top of this shares dropped below 1p, but have now risen and are sitting at 1.18p as we speak.

Will Game fight with the publishers to attain more stock. Or are the rumours true and are Game being sold to Gamestop? If Game are to close this would have a devastating affect on the UK games retail industry leaving it in the hands of the super markets. 

- Michael Johnson


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