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| Version 7 | Version 8 |
|---|---|
| Game Group hit as some suppliers refuse to do business | Game Group hit as some suppliers refuse to do business |
| (about 1 month later) | |
| Struggling video games retailer Game Group has confirmed that a number of its suppliers are now refusing to do business with the company, sending its shares down 63% to 1.29p. | Struggling video games retailer Game Group has confirmed that a number of its suppliers are now refusing to do business with the company, sending its shares down 63% to 1.29p. |
| Game said that while it was trying to resolve the matter "as quickly as possible", it was unsure if its efforts would be successful. | Game said that while it was trying to resolve the matter "as quickly as possible", it was unsure if its efforts would be successful. |
| Some analysts say Game may fail to pay a quarterly rent bill later this month. | Some analysts say Game may fail to pay a quarterly rent bill later this month. |
| This increases the possibility of the company going into administration. | This increases the possibility of the company going into administration. |
| Earlier this month, Game secured a fresh lending deal with its banks, but this has failed to impress its suppliers. | Earlier this month, Game secured a fresh lending deal with its banks, but this has failed to impress its suppliers. |
| Game said in a statement on Monday: "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 said in a statement on Monday: "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." |
| One company that is refusing to supply Game is Electronic Arts. This has meant that Game has not been able to stock some of the biggest-selling games, including Mass Effect 3. | One company that is refusing to supply Game is Electronic Arts. This has meant that Game has not been able to stock some of the biggest-selling games, including Mass Effect 3. |
| Game's chief executive Ian Shepherd later tweeted: "Very tough time for all our teams around the world. We fight on, though. | Game's chief executive Ian Shepherd later tweeted: "Very tough time for all our teams around the world. We fight on, though. |
| "Plenty still to do, customer support humbling as always." | "Plenty still to do, customer support humbling as always." |
| Poor Christmas | Poor Christmas |
| Game has seen its business eroded by competition from online-only retailers, such as Steam and Amazon. | Game has seen its business eroded by competition from online-only retailers, such as Steam and Amazon. |
| The company, with headquarters in Basingstoke, has 1,300 stores worldwide, including 600 in the UK, trading under the Game and Gamestation brands. | The company, with headquarters in Basingstoke, has 1,300 stores worldwide, including 600 in the UK, trading under the Game and Gamestation brands. |
| Both Game and Gamestation also have an online presence, as does the firm's third internet-only brand, Gameplay. | Both Game and Gamestation also have an online presence, as does the firm's third internet-only brand, Gameplay. |
| Its group-wide sales for the key Christmas period fell sharply, dropping 12.9% from a year earlier on a like-for-like basis. | Its group-wide sales for the key Christmas period fell sharply, dropping 12.9% from a year earlier on a like-for-like basis. |
| It is now predicting an underlying pre-tax loss of about £18m for the year to the end of January. | It is now predicting an underlying pre-tax loss of about £18m for the year to the end of January. |
| Game traces itself back to 1992, when a company called Rhino Group was established. | Game traces itself back to 1992, when a company called Rhino Group was established. |
| In 1995 its stores were rebranded as Electronics Boutique. Three years later, 86 Game stores were acquired for £99m. | In 1995 its stores were rebranded as Electronics Boutique. Three years later, 86 Game stores were acquired for £99m. |
| The company was renamed Game Group in 2002, and all store rebranded to the Game name. | The company was renamed Game Group in 2002, and all store rebranded to the Game name. |
| Game Group then purchased Gamestation in 2007. | Game Group then purchased Gamestation in 2007. |
| Analysts say Game is now looking for a suitor, with US rival Gamestop being named as the leading candidate. | Analysts say Game is now looking for a suitor, with US rival Gamestop being named as the leading candidate. |
| However, analyst Mark Photiades of Singer Capital Markets said no buyer was expected to come forward before any move by Game into administration. | However, analyst Mark Photiades of Singer Capital Markets said no buyer was expected to come forward before any move by Game into administration. |
| "We suspect that any potential suitor would prefer to wait for a formal administration process," he said. | "We suspect that any potential suitor would prefer to wait for a formal administration process," he said. |
| "Through a pre-pack, the suitor would have much greater flexibility around store liabilities." | "Through a pre-pack, the suitor would have much greater flexibility around store liabilities." |