Suppliers and lenders continue to be on speed dial with GAME directors. They have to abide the ”terms of trade” the banking syndicate signed off on. Every asset is under review.
Ultimately they just don’t know if all this will work out. Already it seems GAME are exploring a sale of facilities to US rival GameStop which could escalate to a takeover.
The full GAME statement reads:
”Further to GAME’s announcement of 29th 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. While 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.”
Meanwhile publisher EA is showing indifference to GAME’s potential collapse with CEO John Riccitiello simply replying that consumers will just move to another outlet. ”I’m really confident that the consumer that wants to buy Mass Effect or Madden or FIFA or whatever, if a particular retailer is gone, other retailers will absorb the business,” he said.
”But I think in the fullness of time, I am extremely confident that, whether it’s UK or France, or United States, et cetera, the retail marketplace will absorb that business.” Capitalism for the win! Despite GAME not stocking Mass Effect 3 it still managed to repel a Reaper invasion atop the UK all format chart as it launched last week.
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