UK Retailer GAME May Be On It's Last Life

By Michael Shelton / March 12, 2012

The retailer GAME has placed itself up for sale in an attempt to save the struggling company. With rents due within two weeks to landlords, a failure to pay may push the company into administration and result in the loss of thousands of jobs. As a last shot, GAME has hired the financial advisory group Rothschild to find a buyer for the retail chain. GAME is hoping that they will gain interest from the US firm GameStop. Interestingly enough however, GameStop has avoided the UK market as much as they can. With no debt lingering over the US based firm, investing into a UK chain which is already established could prove to be a smart decision. With GAME missing out recently on EA, Nintendo, and Capcom, there is bound to be more problems ahead unless someone swoops in and gets them above water. GAME released a press statement in response to a swirl of press questions:

"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.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."

Source: MCV