Deal Struck To Keep UK Retailer GAME In Business, Thousands Of Jobs Saved
Fledgling UK retailer GAME has been given a fresh start thanks to private equity firm OpCapita agreeing a deal that will see the videogame retailer remain in business.
The OpCapita deal will see 333 GAME stores and over 3,000 jobs saved. As it stands no further store closures or job losses are expected following last weeks announcements.
The 333 remaning GAME stores saved from closure will now be taken over by Baker Acquisitions, with advice from OpCapita. In addition the acquisition firm has said it intends to re-employ a number of staff member who were made redundant at the company’s headquarters in Basingstoke.
No financial terms have been revealed, although it is believed Baker Acquisitions acquired the GAME Group for a small fee. The acquisition group will take GAME out of administration and will provide the capital for it to remain in business and re-pay its multi-million pound debts.
OpCapita managing partner Henry Jackson said: “We are pleased to have reached agreement with the administrator. We strongly believe that there is a place on the high street for a video gaming specialist and Game is the leading brand in a $2.8 billion market in the UK.
“We have assembled a strong team of experienced industry operators to implement the programme of operational change that is needed. There is a huge amount to do but we look forward to the challenge of restoring Game’s fortunes in partnership with its employees and suppliers.”
As part of the administration process under-performing stores were closed last week, with around 277 of 609 GAME and Gamestation stores closed, resulting in around 2,000 job losses.
The future of the GAME Groups international businesses is still unclear, although it is believed US retailer GameStop is interested in buying its 583 stores across Europe and 94 stores in Australia.