GAME retailer teetering on the brink
Game, once the leading video games retailer in the UK, is on the verge of full financial collapse after weak sales and a sputtering economy forced owners to put the business up for sale in a “last-ditch bid to stave off financial collapse”.
Financial experts have revealed that Game, which employs over 10,000 people in the UK, will not meet its quarterly rent bill in a fortnight and failure to pay its landlords could push it into administration.
Advisory firm Rothschild has been appointed to find a buyer for the business, which includes 600 UK shops, but completing a deal in such a short time-frame will be difficult, The Sunday Times newspaper has alleged.
Despite agreeing revised lending facilities with its banks last month, Game’s trading difficulties deepened in recent weeks when major suppliers, fearful of the company’s collapse, withdrew Game’s rights to sell several keenly awaited video game titles.
Accordingly, Deloitte has been lined up to handle any potential insolvency process which could see Game’s estate to be sold on quickly.
Like most of the UK retail sector, the company suffered a dismal Christmas when compared with pre-recession levels, as like-for-like sales plummeted 12.9% in the eight weeks to January 7.
Game has already signalled that losses for the year to the end of January will be around £18 million.