Fears for Game's 13 Irish stores as funding difficulties hit share price - Irish Examiner

Fears for Game's 13 Irish stores as funding difficulties hit share price

By Geoff Percival

Tuesday, March 13, 2012

There is growing uncertainty over the future of leading high-street computer game retailer Game, which operates 13 stores in Ireland, employing 125 people.

The firm has seen its share price plunge on the back of funding and stock supply difficulties.

A spokesperson for the London Stock Exchange-listed Game Group plc — which has seen its share price plummet by 94% in the past year — said yesterday that the business was looking at all funding options, after it had been reported that management was putting the company up for sale.

The Basingstoke-headquartered group — which, as well as Britain and Ireland, trades in France, Sweden, Spain, Portugal, the Czech Republic, and Australia — said yesterday that it is reviewing the position of all of its assets "in the UK and international territories".

Last month, the company agreed revisions to its existing lending agreements, a move which basically allowed it to remain trading. It has, however, encountered trouble with suppliers, some of whom are reticent to distribute new games titles to the company on account of its funding position.

Game said yesterday that talks with suppliers are continuing but it has, so far, not been possible to source new products from a number of suppliers.

"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," the company's management added.

To add to Game's woes, its share price sank by another 65% yesterday. As for its future, press speculation has linked it with a tie-up with US retailer, Gamestop — which has been closing its stores in Britain and Ireland, as part of its strategy of becoming an online seller.

Game has been closing stores, including 19 across Britain and Ireland last year.
However, British analysts have suggested that any likely suitor would probably wait to see if the group goes into administration before making a move.

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This appeared in the printed version of the Irish Examiner Tuesday, March 13, 2012