GAME Creditors Reject Rescue Bid – £180 Million Required To Prevent Administration

By Matthew Bennett, Associate Editor
Posted on March 19, 2012 AT 06:04am

THE BUZZ: GAME is close to collapse after lenders rejected a rescue deal proposed by OpCapita.

The Guardian reports that OpCapita offered to buy the U.K retailers debt from lenders and settle all accounts with suppliers, who are currently owed around £40 million.

The Sunday Times also reported that GAME will enter administration if it can’t secure £180 million to pay back creditors this week.

The retailer is said to have a £21m rent payment due, more than £10m to pay in differed VAT and a £12m wage bill due shortly.

EGM’s TAKE: The bills keep piling up and there’s no money to pay them off. The downward spiral continues and with OpCapita’s bid being rejected it appears that the end is near for GAME. In this climate there is absolutely no way they can make £180 million by the end of the week, unless some very generous investor swoops in to save them. Looks like the end of the road.

Matthew Bennett finally got his big break with EGM three years ago, following years of volunteer work for various sites. An ability to go many hours without sleep and a quick wit make him ideal for his role as associate editor at EGMNOW.com. He often thinks back to the days when the very idea of this career seemed like nothing but an impossible dream. Follow him on Twitter @mattyjb89. Meet the rest of the crew.