GAME stores set to close while OpCapita’s bid breaks down

A few days ago it looked like there was hope for GAME Group after OpCapita offered to buy GAME. The news also helped boost its share price, which currently stands at 3.07p, after having started the week at an all time low of 0.5p, However, according to The Guardian, OpCapita’s deal, “appears to have been given the cold shoulder by lenders.” Amid this, GAME has already started sending out letters to customers warning them of store closures. This is in relation to last month’s announcement, where GAME revealed that they planned to close 35 of their stores.

OpCapita’s offer involved taking over GAME’s debts and repaying all of their suppliers. However, what makes the issue more complex is that numerous banks are said to be involved, such as Royal Bank of Scotland, Barclays, HSBC and La Caixa, with GAME Group owing them a combined total that amounts to more than £100 million. It also appears that a deal might not be reached, with The Guardian revealing that, “talks with all parties were continuing, but insiders suggested further discussions had not taken place even though time is short.” With no deal is finalised, it’s looking highly likely that the video games retailer will go into administration. Especially since no one else appears to be stepping in, as so far GameStop have only shown interest in GAME’s stores operating in Spain and Portugal, while upon contacting Walmart they remained tight lipped, responding by saying, “we’ve made no announcement, and we don’t comment on rumours and speculation.

It has been a turbulent time for GAME during the last few months. After failing to stock big titles such as Mario Party 9, Mass Effect 3, and Street Fighter X Tekken, it has also been revealed that they won’t be stocking upcoming titles such as Resident Evil: Operation Raccoon City, Ninja Gaiden 3 and Kid Icarus Uprising.

With 610 GAME and Gamestation branches across the UK, GAME aim to reduce this to 550 by the end of 2013. Customers who had pre-ordered games in Bracknell, and one of the Wrexham branches, recently received letters informing them that these stores are set to close on Saturday 24th March, and that their pre-orders would be transferred to their closest GAME or Gamestation.

Eurogamer were informed by GAME that they refuse to reveal which stores they intend to close and will instead notify customers directly.

Have you received a letter from GAME? Do you think that GAME will fall into administration?

Source: Eurogamer | The Guardian |

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