Possible Buyout For Retailer GAME As More Suppliers Stop Support
UPDATE: It’s gone from bad to worse for GAME, as The Guardian has reported that the offer put forward by OpCapita has been rejected.
OpCapita had tabled an offer in which it would settle the struggling retailers debts with its main lenders, including The Royal Bank of Scotland who are owed £45m, and its supplies who are owned a combined £40m.
However it would appear that the offer was not acceptable as it was rejected outright.
There is a small glimmer of hope for GAME that an arrangement can be reached as a spokesperson for RBS said negotiations are still on going. Although at this current stages no talks have taken place since the offer was rejected.
Time is of the essence now, as GAME must pay a rent bill that is due in a weeks time. Should no deal be reached then it is almost certain that the retailer will slip into administration.
Walmart and GameStop have both been rumoured to be considering an offer.
It has also been revealed that the reason Electronic Arts and Nintendo stopped their game supply was due to GAME’s insistence on discounts on supplied stock.
The ever developing GAME saga has taken a somewhat positive step as reports suggest that the GAME Group has been approached by a third-party, believed to be retail salvage specialist, OpCapita, in regard to help the group avoid administration.
The report came from The Telegraph, which said OpCapita had offered to buy the GAME Group’s debt from its lenders. OpCapita previously purchased Comet, another struggling UK chain for £2 last month. It went on to say that discussions had taken place, however there was no guarantee that the talks would lead to a positive outcome.
“It is uncertain whether any of the solutions currently being explored by the board will be successful or result in any value being attributed to the shares of the company.” said a statement on Game’s official website.
This rumour resulted in another positive outcome for the retailer as the share prices in GAME took an upwards turn.
Earlier in the week share prices hit a low, reaching down to less than 1p each, that rose 68% to 2.1p, then again 71% to 3.59p at time of publishing. Not a huge improvement, but an improvement nonetheless and a small positive to take to what has been a dismal series of events thus far.
Not all positives.
However the negative news still keeps coming, following reports that GAME has now lost the support of Microsoft, Activison and SEGA, all of which won’t be supplying the high-street retailer with new stock.
The news came from a leaked memo, via MCV, that amongst numerous other titles Game won’t be stocking Activision’s Cabela Big Game Hunter 2012 or Zhu Zhu Babies, or Microsoft’s Kinect Rush.
Microsoft follows Nintendo as one of the three main platforms not to support Game, meaning only Sony remain.