Game Group hit as some suppliers refuse to do business

[keefy]

Game was the largest video game franchise in the UK.

Struggling video games retailer Game Group has confirmed that a number of its suppliers are now refusing to do business with the company, sending its shares down 68%.

Game said that while it was trying to resolve the matter "as quickly as possible", it was unsure if its efforts would be successful.

Some analysts say Game may fail to pay a quarterly rent bill later this month.

This increases the possibility of the company going into administration.

Earlier this month, Game secured a fresh lending deal with its banks, but this has failed to impress its suppliers.

Game said in a statement on Monday: "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."

One company that is refusing to supply Game is Electronic Arts. This has meant that Game has not been able to stock some of the biggest-selling games, including Mass Effect 3.

Game's chief executive Ian Shepherd later tweeted: "Very tough time for all our teams around the world. We fight on, though.

"Plenty still to do, customer support humbling as always."
Poor Christmas

Game has seen its business eroded by competition from online-only retailers, such as Steam and Amazon.
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“Start Quote

We suspect that any potential suitor would prefer to wait for a formal administration process”

Mark Photiades Analyst, Singer Capital Markets

The company, with headquarters in Basingstoke, has 1,300 stores worldwide, including 600 in the UK, trading under the Game and Gamestation brands.

Both Game and Gamestation also have an online presence, as does the firm's third internet-only brand, Gameplay.

Its group-wide sales for the key Christmas period fell sharply, dropping 12.9% from a year earlier on a like-for-like basis.

It is now predicting an underlying pre-tax loss of about £18m for the year to the end of January.

Game traces his itself back to 1992, when a company called Rhino Group was established.

In 1995 its stores were rebranded as Electronics Boutique, with the Game name following in 2002.

Analysts say Game is now looking for a suitor, with US rival Gamestop being named as the leading candidate.

However, analyst Mark Photiades of Singer Capital Markets said no buyer was expected to come forward before any move by Game into administration.

"We suspect that any potential suitor would prefer to wait for a formal administration process," he said.

"Through a pre-pack, the suitor would have much greater flexibility around store liabilities."

http://www.bbc.co.uk/news/business-17336697

[Nitey]

They're getting Twisted Metal this Friday. Sony hasn't given up hope yet lol. Not that they give a shit, they just want people to play it (H)

I feel bad for all those that will potentially lose their jobs, but GAME have been shit tbh. Just as a company, and how they did things.

[keefy]

There were many rumours that Game wouldnt allow Homefont on Steam in the UK to begin with along with other games for PC.

[Oli19177]

Just seen this poss way out for game group


http://whatculture.com/gaming/rbs-to...tion-today.php


Sent from my iPhone

[*goo]

If I'm getting this right, RBS that's 80%+ owned by the UK taxpayer and trying to sell at a serious knockdown price to some consortium in Saudi is now also trying to get involved in a video game business that's dangerously close to death itself?

You can't make this s*it up!


Obligatory TapaTalk signature.

[R3D D3V!L]

What makes this funny is that RBS outlets are being sold off in England and Wales. Mine is being sold to Santander so my account is switching to Santander in the next few months.