GAME Closure Looms on Monday
Game will be forced to close its doors on Monday if it can't secure a last-minute deal with publishers to bring in some product and raise some funds.
Despite its increasingly desperate situation, executives at U.K.-based retailer Game still hold out hope that the chain can be saved through an acquisition deal, but first it needs to survive the weekend and make it into next week. The company held talks with publishers earlier today to try to strike a deal that will allow it to keep the lights on a little longer but if nothing comes of it, it will reportedly be closed down for good on Monday.
A big sticking point is Game's lack of credit insurance, which could leave publishers holding the bag if the company folds. Nonetheless, one supplier said it's in the industry's best interests to keep Game going. "We all want a strong specialist to survive, not a lame duck just bumbling along - that would be pointless. Somehow, we've got to find a way," he told MCV [http://www.mcvuk.com/news/read/game-holds-crunch-talks-with-suppliers/093063].
He also made the interesting point that Game's stores in the U.K. aren't the problem and pointed the finger at company executives for not taking action sooner. "The real shame about that is the fact that it's not the U.K. or Spain that has caused this predicament. It is France, Australia and Scandinavia that has been losing big money for a long time," he continued. "You have to wonder why someone somewhere within Game didn't notice that and do something about it sooner. Those stores should have been closed."
Even if Game is able to survive until an acquisition, the supplier said that there's no way the company will be able to maintain its current store count, which currently stands at around 600 in the U.K. alone. Worldwide, the Game Group operates roughly 1300 stores bearing the Game and GameStation brands.
Permalink
Game will be forced to close its doors on Monday if it can't secure a last-minute deal with publishers to bring in some product and raise some funds.
Despite its increasingly desperate situation, executives at U.K.-based retailer Game still hold out hope that the chain can be saved through an acquisition deal, but first it needs to survive the weekend and make it into next week. The company held talks with publishers earlier today to try to strike a deal that will allow it to keep the lights on a little longer but if nothing comes of it, it will reportedly be closed down for good on Monday.
A big sticking point is Game's lack of credit insurance, which could leave publishers holding the bag if the company folds. Nonetheless, one supplier said it's in the industry's best interests to keep Game going. "We all want a strong specialist to survive, not a lame duck just bumbling along - that would be pointless. Somehow, we've got to find a way," he told MCV [http://www.mcvuk.com/news/read/game-holds-crunch-talks-with-suppliers/093063].
He also made the interesting point that Game's stores in the U.K. aren't the problem and pointed the finger at company executives for not taking action sooner. "The real shame about that is the fact that it's not the U.K. or Spain that has caused this predicament. It is France, Australia and Scandinavia that has been losing big money for a long time," he continued. "You have to wonder why someone somewhere within Game didn't notice that and do something about it sooner. Those stores should have been closed."
Even if Game is able to survive until an acquisition, the supplier said that there's no way the company will be able to maintain its current store count, which currently stands at around 600 in the U.K. alone. Worldwide, the Game Group operates roughly 1300 stores bearing the Game and GameStation brands.
Permalink
