to join the CVG community. Not a member yet? Join now!
CVG
News

GAME will die this week without £180m rescue - Report

Retailer faces Armageddon this weekend without buyout, claims Sunday Times

GAME Group will go into administration this week if it doesn't secure £180 million to pay its creditors, according to The Sunday Times.

Zoom

The specialist retailer, which has been the subject of multiple doomsday reports over the past few weeks, reportedly has a £21m rent payment due on Sunday, more than £10m owed in deferred VAT, £40m owed to video game suppliers and a £12m wage bill shortly requiring payment.

Any potential investor in the company would have to pay the firm's six banks - including Royal Bank of Scotland - £100m, as well as the above mentioned debt, reports MCV.

Both US giant Walmart and Comet owner OpCapita have reportedly tabled offers for the company, though lenders are said to be sceptical that the latter has the means to rescue the firm.

In recent weeks GAME has lost the support of Nintendo, EA, Sega, Capcom, Tecmo Koei, Microsoft and Activision, meaning it hasn't been able to offer recent releases such as Mass Effect 3, Street Fighter X Tekken and FIFA Street, and won't be stocking upcoming games including Resident Evil: Operation Raccoon City and Kinect Star Wars.

The retailer said in a statement last week: "The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing 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."

Comments