GAME Go Up For Sale
UK based retailer GAME has today put itself up for sale in a desperate attempt to raise some much needed money in order to pay off a quarterly rent bill that GAME must pay within two weeks time.
However despite all this, the company is still hopeful of being able to come to a deal with U.S based retailer GameStop, who has been connected to a possible purchase of GAME’s Iberian business. However GAME have also recruited financial advisory group Rothschild to attempt to find a buyer for the struggling business and have also lined up the company Deloitte to deal with things if GAME does have to enter insolvency.
With the recent flurry of doom and gloom news GAME’s stock has fallen to an all time low amount of under 1p this morning. The stock price has been falling slowly since a record high of 300p in mid 2008. However since this morning the stock has stabilised slightly and now sits at 110p. This loss of stock price is not exactly unexpected with game posting a loss of over £50,000,000 in the first half of last year alone and with the most recent withdrawal of all E.A stock from GAME’s shelves including EA’s latest big release Mass effect 3.
In wake of this news GAME has released the following statement.
Further to GAME’s announcement of 29th of 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. Whiles 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.
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[...] GAME has also put itself up for sale as a last effort to raise cash to pay their quarterly rent bill that is due in two weeks. If GAME cannot get the required money then the company could go into Administration and risk over 10,000 jobs according to the Sunday Times. [...]