We reported last week that UK retailer, The Game Group PLC, had hit serious financial troubles and was looking to sell 60 of its UK stores. However, the group has now reported the situation to be far more dire. Plummeting down the spiral caused by the inability to obtain stock of the latest titles, the firm's share prices have fallen from the 62p per share of last year down to 1.28p per share just yesterday.
In response, the group has now placed its entire business up for sale, looking desperately for a buyer. Game owns 610 stores in the UK with 6,000 staff, along with a further 4,000 staff in 663 stores abroad, covering brands such as ScoreGames, Centro Mail, GAME, Gameplay and Gamestation. "It is uncertain whether any of the solutions currently being explored by the board will be successful or will result in any value being attribute to the shares of the company ... It has not been possible to source new products from a number of suppliers," stated the board.
It's expected that with a large, second-quarter rental payment looming, due on March 25th, if a deal can not be made, the firm may soon collapse and enter into administration. Interest has been shown by the world's largest video games retailer, GameStop, for stores in both Spain and Portugal, however the future of the group's UK stores remains highly uncertain. What can be expected is, that any rescue deal or sale will likely result in the closure of many stores, in an effort to avoid the mistakes made by The Game Group, that has led the firm into its current situation.