GAME - The end is Nigh???

[Bob]

GAME's bosses may pull the plug on the embattled high street shop, insiders have claimed.

Directors are considering cutting their losses after GAME failed to secure stock of Mario Party 9 and, crucially, Mass Effect 3.

Indeed GAME will not stock any of EA's planned March releases, including Tiger Woods 13, FIFA Street, and The Sims 3 Showtime.

A source "close to the situation" told The Express: "There is a real risk that GAME's directors will pull the plug because they can't be sure that the company can survive through the next trading season, and then insolvency becomes inevitable.

"They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses."

GAME could miss out on a potential £7 million in revenue and £2.5 million in profit by not stocking Mass Effect 3, an analyst predicted last week.

Last month GAME managed to convince its syndicate of lenders, led by Royal Bank of Scotland, to relax its debt covenant. But sources "close to the State-owned bank" told The Express it was running out of patience.

"The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don't have products to sell," said an "industry source".

"This could happen if more suppliers follow suit."

Another source added: "RBS will be looking for the best way to secure its position or improve it. Suppliers pulling their products is a stepping stone to administration, but the problem for RBS pulling the plug is that it will be an expensive and complex administration because Game has 1274 stores across Europe and Australia.

"Lending banks will only want to consider a pre-pack administration, where there is a pre-arranged buyer, but who would want to buy GAME?"

RBS declined to comment on the report.

GAME Group was last week forced to issue a note to shareholders in an attempt to calm concern over its ability to stock new games.

Its current stock issue with EA is "temporary", and both parties are working to make sure it doesn't happen again, GAME said.

GAME added: "As part of the strategic plan development process which it announced on February 3, the Group has been working closely with its suppliers, as well as other stakeholders. In particular, the Group has been discussing with its suppliers the level of support and engagement it needs from them over the coming months. There have, during that process, been isolated instances where it has not been possible to agree launch plans for individual game titles."

US retail giant GameStop is thought to be poised to make a bid for GAME, particularly its UK and Spanish business.

[The-Marb]

Looks like whatever happens Game will have to radically restructure.

[Tom909]

[Johnny Shoulder]

Hmmm, I always sceptical whenever I see something with "a source close to..." rather than a statement from the company.

Still, it's not looking good at all for Game.

[ClownTrousers]

I could have written that though, so could any legal or finance person. It's entirely plausible, just not very specific.

[Keep 117]

GameStop is interested in buying 291 shops belonging to GAME in the Iberia region, including Spain and Portugal, according to a report in The Indepdent.

The report claims that GAME put its 663 store overseas operation up for sale in January by advisors Rothschild.

Eurogamer has seemingly backed up the report, adding the US retailer is one of several outlets looking at a buyout of the retailer, adding its current ongoing online sale of stock is to entice possible buyers.

GameStop had previously been mentioned in regards to a GAME takeover. Both have declined to comment on The Independent report.

It comes as Capcom announced earlier this week it wasn’t to stock Asura’s Wrath and Street Fighter x Tekken in stores ahead of both games’ releases tomorrow in the UK. They join Mass Effect 3 on the list of games that won’t be stocked tomorrow, as will the remainder of EA’s March lineup.

Clearout sales then?

[Bob]

Embattled high street shop GAME "has two weeks to turn its fortune around", according to a new report.

Senior members of the GAME management have been told administration is possible, MCV reports.

The UK trade publication said the first step in this process is the firesale Eurogamer reported on earlier today.

GAME launched a Spring Clean promotion today, offering games, hardware and accessories at heavily discounted prices.

MCV said this was an effort to keep the company alive - something we've heard from our own sources.

GAME has struggled to stock new titles in recent weeks, including the biggest game of the year so far: Mass Effect 3.

[Biggs]

GAME Bournemouth clearly hasn't heard about this sale, because there's nothing worth buying.

[Bob]

http://www.edge-online.com/news/report-game-group-sale

Oh dear. Shares are worth less than a penny and apparently they'll struggle to pay next months rent bill.. Closure almost certain now. Sad day.

[Keep 117]

http://www.edge-online.com/news/report-game-group-sale

Oh dear. Shares are worth less than a penny and apparently they'll struggle to pay next months rent bill.. Closure almost certain now. Sad day.

Hopefully they get bought out by someone at this stage... They have to have holdings somewhere still worth something!

[CherryCokeChaos]

it seems our last hope is gamestop buying us out, which they've always said they don't want to do, but now they could have the controlling share of the UK market, I understand however it's easier to let us crash then buy us than buy us now. On the sale side there was some good stuff but I think most of it went day one or two last week, I managed to get 1600ms points for a fiver and dodonpachi new for £3 but that was all.

[Bob]

My local GAME is still selling M$ points and controllers at full price.. The closing down sale might be the time to snaffle those up.

I've done my bit. Okamiden for £15 on DS was something of a bargain as I can't even find it online or eBay.. (Cue a deluge of people who aren't as rubbish as me finding it all over the shop) and LA Noire for £7 on 360.

[hollywooda]

My local GAME is still selling M$ points and controllers at full price.. The closing down sale might be the time to snaffle those up.

I've done my bit. Okamiden for £15 on DS was something of a bargain as I can't even find it online or eBay.. (Cue a deluge of people who aren't as rubbish as me finding it all over the shop) and LA Noire for £7 on 360.

Well I'd say that's GAME home n dry!!... Wow Bob, or should I say Bono!?....

[Keep 117]

GAME has confirmed to VG247 this morning that Microsoft and Activision has pulled some of its titles from the retailer, including the Kinect Star Wars hardware bundle.

No statement was given, but it confirmed the news to us in several emails this morning.

It now means it won’t stock the Kinect Star Wars Xbox 360 bundle and Kinect Rush from Microsoft, as well as Zabela Big Game Hunter 2012 and Zhu Zhu Babies from Activision.

We were told by a source last night the chain wouldn’t stock the Disney/Pixar title. MCV reported on it last night as part of a bigger story that claimed Microsoft and Activision were pulling its support for the group.

[ClownTrousers]

GAME today confirmed that it will no longer stock video games, consoles or gaming accessories. "Sure, it's a drawback if you are closed minded," said a spokesman, "GAME will continue as a very successful florist".

Rumours have since arisen that GAME can no longer stock roses or lillies.