GAME Needs $286 Million to Survive March

GAME Needs $286 Million to Survive March

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Time is running out for the ailing British retailer.

Though beleaguered by a string of heavy losses which have pursued it since the tail-end of last year, British retailer The Game Group has managed for months to keep its head above water while its owners search for new sources of investment. However, it now appears that time is running out for the company at speed: According to a new report, The Game Group has to find $286 million (£180 million) in investment prior to the end of March if it is to have any hope of seeing April. This news is particulary unwelcome for the company's large workforce, which numbers over 6,000 employees in the UK alone.

Already weighed down by massive debt and having lost millions over its failure to stock Mass Effect 3, The Last Story, and a wide array of other titles, the company now faces an end-of-the-month crunch the likes of which it has never known. The $286 million it needs to survive is composed of $33.4 million (£21 million) in rent payments, $19.1 million (£12 million) in wages, $15.9 million (£10 million) in owed sales tax, and then $63.6 million (£40 million) in payments owed to suppliers. The company also owes in excess of $158.9 million (£100 million) to various banks. Any investor would need to be willing to cover these expenses to avoid seeing The Game Group slip into administration.

Who might this potential investor be, then? Over the past weeks various rumors of interest have flared and before quietening, culminating last week The Game Group's creditors' rejection of OpCapita's buyout plan. While it could be the case that buyers are waiting until the company enters administration before making a bid, the enormous starting costs coupled with the expectation of further losses on the part of any investor don't give much hope for a last-minute rescue.

With that in mind, many in the British games industry (including The Game Group's thousands of employees) will spend this week wishing for such an investor to appear before the end of the month. While The Game Group's retail model isn't favored by everyone, its GAME and Gamestation locations remain the biggest and most visible game stores in the country. What would the British games market look like if they fell? Sadly, given the general tenor of the past two months, it might not be that long until we find out.

Source: UK Press Association/Sunday Times

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Whilst I feel bad for their employees, Game have been taking the piss with regards to Loyalty cards and pre-owned games for years now. You had to spend about £200 to get £2.50 in points and pre-owned were about 2.99 cheaper for newish games.

That said it will be weird if they dissapear from the High St, espicially seeing as how they sucked gamestation into their web a couple years ago, so now we lose two retailers intead of one

Surely a Kickstarter campaign is the ticket here? ;)

how do you manage to screw things up so badly?

i know they have been trying to copy gamestop. but still how?

I'd rather bailout Greece than GAME.

I can answer how it will look with out game.....Orange

The smelly hobo down the streets seems to be a safer investion than GAME... *pulls out some money to give it to him next time I walk buy*.

Wow, this is pretty bad news for those employers, I know a couple too.

I couldn't care less for those suits, they will just easily find other jobs I'm sure.

Plus it will be weird not seeing a GameStation at my local high street too.

rhizhim:
how do you manage to screw things up so badly?

i know thew have been trying to copy gamestop. but still how?

The current company is Electronics Boutique renamed, they bought the Games shops at the top of the market. The UK market dropped by 60% last year and they could no longer make the interest payments. Like many other business they got wiped by the credit crunch.

Pipotchi:
Whilst I feel bad for their employees, Game have been taking the piss with regards to Loyalty cards and pre-owned games for years now. You had to spend about £200 to get £2.50 in points and pre-owned were about 2.99 cheaper for newish games.

Used to shop at game until two years ago when a small, independent game shop called XPRESS Games opened in my home town, offering better deals and staff that actually seem to play games. (plus they ship any games I ordered with them and any accessory's that game with it to my home in Prague :).

I'm back off to Prague tomorrow and thought "hmmm looks like games about to go belly up, I think I will used up the points on my game card before I leave". So, I took my game card, of which I have brought numerous games over a 5-6 year period, only to find I had £13.50 in points, £5.00 of which came from my canceled mass effect pre-order. That means £8.50 from about £500-600 spent there. Just enough for a pre-owned uncharted 2 game.

So yeah, I wont shed many tears over game.

pff, why waste that kind of money on a business that's already failing when there's far more worth while uses of such money, like purging the heretic to every ones childhood that is Michel Bay

Doesn't surprise me. Game's prices were never competitive, their catalogue lacking, their staff were unhelpful and if you ever tried to order in a game that was "in the warehouse" they would still have the nerve to tell you it would be in by the end of the week a month after you ordered it. That's longer than it takes to get something from overseas on ebay.

that's our economy for you, guys; if you cannot keep up with the competition, you're going down - that's what competition is there for, survival of the fittest - and apparently you're not fit for your environment, the market

Bye bye GAME.

Feel really sorry for everyone that works there, nothing worse than innocently losing your job in this climate.

Will be sad to see the Gamestation in my town go and the two GAMEs in the City go (the Gamestation has already gone.)

As cheap as on-line is compared to the High street, my Postman is fucking appalling; RM are the reason I hate most on-line shopping.

Every time I've stepped foot in a GAME shop, the employees didn't give a f***, didn't know games, couldn't advise on anything, and were not very customer-friendly overall. It's a good thing this dies. You can't focus solely on making money to stay alive, you have to show people they're not here just to give you money.

Die a horrible life GAME, you deserved it. I only feel sorry for the employees as it's never fun to lose your job.

rhizhim:
how do you manage to screw things up so badly?

i know they have been trying to copy gamestop. but still how?

From what I understand the main losses have been in the company's foreign stores. In fact, from a Related article

He also made the interesting point that Game's stores in the U.K. aren't the problem and pointed the finger at company executives for not taking action sooner. "The real shame about that is the fact that it's not the U.K. or Spain that has caused this predicament. It is France, Australia and Scandinavia that has been losing big money for a long time," he continued. "You have to wonder why someone somewhere within Game didn't notice that and do something about it sooner. Those stores should have been closed."

Well, at the very least, they might have a "Closing down sale" and I can get some cheap games.

 

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