Game Store Could Be On Its Way Out!
Game Store Could Disapear After Last Weeks Talk
Game Group could be the next major retailer to disappear from the High Street after its shares were suspended and the management admitted the business has no value.
The Game Group, which has 1,300 stores worldwide and employs 10,000 staff, is teetering on the brink of a collapse which could be the largest in the retail sector since the demise of Woolworths.
Several suppliers refused to provide Game with new products as it was reported to be trying to raise £180million this week or face administration.
Pending clarification of the company's financial position Games shares were suspended on the London Stock Exchange.
All the group's stores, which also include the Gamestation brand, are still open for business. Some 600 of Game's stores are in the UK, employing 6,000 staff.
It has been reported that Game owes:
- £21million rent payment due today,
- £12million wage bill at the end of the month,
- £10million in VAT,
- £40million to suppliers.
A new investor would have to pay up to £100million to Game's banks.
Game has borne the brunt of dire trading in recent months, which has forced the chain to ask its suppliers for more generous trading terms.
Some of them have instead stopped supplying Game with new releases, such as Mass Effect 3 and Street Fighter X Tekken, leaving fans disappointed and adding to the group's trading woes.
Game agreed fresh lending facilities with banks last month and began seeking access to alternative sources of funding earlier this month.
It has already signalled that losses for the year to the end of January are likely to be around £18million.
“how on earth do these companies manage to owe so much money?” asks Greengates Builders Merchants Accrington, Lancashire.