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Posted March 19, 2012 by Tim Norman in News
 
 

GAME UK needs $270 million by March 25 to survive


UK-based retailer GAME has been in serious financial trouble for some months now, and, after the failure of the latest rescue deal, the firm now needs to raise £180 million (roughly AU$270 million) within a week to avoid going into administration.

GAME’s latest troubles have been the reason why the UK and European arm of the retailer has not been able to sell many popular titles, including recent high-profile releases such as Mass Effect 3 and several Capcom titles. The organisation has a £21 million (AU$31 million) rent bill due this week, plus a further £12 million (AU$17 million) wage bill.

It’s possible that the company could find a buyer by the March 25 deadline, however any buyer would be taking on at least £100 million in debts to banks, among other liabilities.


Tim Norman

 
Raised in the arcades of the 1990s, Tim believes that if you're not playing for score, then you're not playing.


9 Comments


  1.  

    Being an Aussie site, shouldn’t you stick a UK in the title? Game AU is doing fine and is run separately from the UK lot. Don’t taint them.




  2.  
    Tim Norman

    Good idea.




  3.  
    Sobriquet

    Would this have any effect at all on Game AU? Not sure how they survive, TBH, they’re always apparently empty when I walk past.




    •  
      Bev

      This is true. The only two I knew about (Brisbane CBD and Surfers Paradise) shut down…

      Oh wait, is the Robina one still kicking around?




  4.  
    Adam Shurey

    I’d imagine that it would have some effect on GAME AU, but not a direct one. I’ve been a lot more worried about the AU side rather than the UK one until now, they just don’t seem to get much business. It’s a shame, since I think they’re a really good store. Here’s hoping they don’t end up in the same situation as the UK side.




  5.  
    LeonJ

    I would have thought GAME UK/Europe going under would mean the AU one would as well?

    They are the same company right? Run per territory but owned by the same?




  6.  

    I suspect Game AU survives due to their Website. It’s quite good and decently priced, with good specials.

    They are my preferred AU gaming site.




  7.  
    vizzini111

    I’m really surprised with this, I regularly by from game.co.uk out of all the UK site’s i always found them to be the best value and they were by far the quickest to ship.

    Hopefully someone bails them out, I don’t want to start using Zavvi again and aussie retailers are just a rip off (although they have dropped the prices over the past 12 months a fair bit)





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