Posted on March 12, 2012 AT 05:18am
A Sunday Times report claimed the company has brought in financial advisement firm Rothschild to find a buyer.
GAME is required to pay landlords in just two weeks time and finance company Deloitte is apparently on standby, should the company enter an insolvency process.
In a statement released this morning the company states that it is trying to secure stock from publishers, however admitted that its efforts may be in vain.
The 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 3rd February 2012, and to meet its revised strategic plan. While these discussions are on-going, 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 on-going 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.”
GAME’s share price currently sits at less than one pence. The price at writing was 0.85p, a drop of 75 percent since the troubles began.
EGM’s TAKE: When the reports first surfaced of stock issues people knew that GAME was in trouble. However, no one could have expected the fall to be so rapid. In just a matter of weeks the company is facing administration and may be forced to shut down completely unless a buyer can be found. U.K. supermarkets must be loving this news, as soon they may have a large chunk of GAME’s customers heading their way.
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