GAME Group Issues Statement After Reports Suggest it is “for sale”

The Times this morning reported that GAME Group is now “for sale.” This has prompted them to issue a statement regarding the recent industry speculation that, since they could not secure key EA, Ubisoft and Nintendo titles earlier this month and following reports that staff were given two weeks to brace for administration, the chain is now facing administration in the very near future.

The statement discusses the company’s issues securing stock from publishers and creditors, but does not paint a healthy picture for the company’s future in its current form. Many publishers are currently wary of providing them with stock fearing that it may be seized by a third party in the event that a rapid liquidation of GAME’s assets occurs. The Times suggests that it will be using financial services group Rothschild to find a buyer for its holdings. The chain has begun a massive sale in an attempt to turn as much of its stock as possible into cash assets.

The statement from GAME Group can be found below:

“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.”

This morning, the company’s share price reached an all time low of 0.5p per share, compared to 61.5p per share this time last year.

Many people have speculated that American company GameStop may step in to acquire GAME Group, but others suggest that they are wary to do so, due to their struggling European arms.

What do you think? Would you be sad to see GAME and Gamestation leave the high street? Do you think that they will be bought out by GameStop? Let us know in the comments below.

Sources: Source 1

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