Attention was drawn to them after they announced that their stores, and the affiliated chain; Gamestation, would not be stocking Mass Effect 3 or a number of other titles. Whilst the spotlight was on them, people noticed that a number of retail stores have closed in recent weeks. It wasn’t long before many people came to the conclusion that GAME was running out of money fast.
That was only last week. The Sunday Times have brought to light that GAME have hired Rothschild, a financial advisory company, in order to help them find a buyer for themselves. MCV have reported that GAME has already put itself up for sale. In fact, GAME have to pay their landlords before the end of the next fortnight and they’re struggling to find the money for it.
To make things worse, shares in GAME have been dropping by the hour, now settling at less than 1p each.
Now, in a press release issued by GAME earlier today, GAME have claimed to be working to fix any stock issues and that they are attempting to secure funding to prevent any future issues, despite any difficulty.
The statement issued read:
“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.”
Whilst GAME are trying to show a strong face, the future isn’t looking great for them. It’s safe to say that they need money urgently, money that they’re hoping to draw from their latest Spring Clean sale.
Whilst the US giant, GameStop, has shown interest in purchasing the Spanish arm of GAME, they have no apparent interest in the British arm of the corporation. If a buyer doesn’t show interest soon, then GAME UK may have to go through administration. Deloitte is on stand-by in case GAME has to go through an insolvency process.
With things looking bleaker by the day, what could be the future for GAME?