GAME is almost over

 

The UK GAME Group could be finally coming to an end as rumours have suggested the company is now up for sale.

Over the past few weeks GAME has been having a difficult battle providing customers with their products. New releases including Mass Effect 3 and Street Fighter x Tekken are not being sold in store or online. A source has reported that the company has a two-week deadline to pay the rent on GAME and Gamestation’s shops, and if it hasn’t sorted out its finances by then, this could spell bad news for the business.

The group, which has 600 stores across the UK and employs around 10,000 people, admitted today it is facing difficulties after several suppliers refused to provide new stock.

The UK paper The Sunday Times states that financial group Rothschild has been hired to find a buyer, with American chain GameStop reportedly already interested in GAME’s Spanish subsidiary. As the current situation stands, acquiring the main British business would involve a pernickety pre-pack administration a risky procedure that may put off some potential buyers.

All these financial problems started straight after Christmas when GAME’s lenders change their terms and the only way GAME could carry on was wangling a cheaper deal from publishers for their stock. Many publishers decided not to help out and has caused GAME to miss out on the big named titles.

The result has left GAME’s share price dropping to £15 Million. GAME admits the share price could potentially fall to zero:

‘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 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers’

What are your opinions about the situation? If GAME closes down, where will you be purchasing your video games from?  Let us know below.