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Game in dire straits

Game ps1211-20
Scene Setter Game Pictured by Pam Stanforth ps1211-20

Game ps1211-20 Scene Setter Game Pictured by Pam Stanforth ps1211-20

THERE are new doubts over the future of a gaming shop in Bridlington.

Game Group, owners of the Game shop in the Promenades Shopping Centre, has admitted that it is on the brink of collapse.

The retail chain, which specialises in computer games and consoles, has been experiencing increasing financial difficulties as gamers forsake boxed products in favour of downloads or shop on-line.

The situation has been made worse because the companies making the most popular new games and consoles, such as Electronic Arts and Nintendo, are refusing to supply the chain, due to fears about its creditworthiness.

By Monday the company’s shares had already lost 95% of their value compared to a year ago, and since then have continued to crash, reaching just under a penny each. By the beginning of this week this put a value on the company of less than £4m, despite it having 1,270 stores across Europe and Australia, almost half of which are in the UK.

A buyer is currently being sought for the group, but if one does not emerge quickly it is expected that the company will go into administration.

A statement issued by the company said: “The Group confirms that it remains in discussions with its suppliers and lenders. 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.

“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.”

There is still hope that a buyer might be found, with Gamestop, the world’s biggest producer of video games, considered most likely to step in. However even this would not be expected to save the whole group.

 

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