Video Games, Playstation 3, Xbox 360, nintendo, wii, ds, sony, microsoft, PSN, XBLA, Onlive, Playstation Vita, Wii U,
Posted by drew10 on Mar 19, 2012
Game once again on the brink.

Game once again on the brink.

Teetering like Michael Caine over a cliff at the end of The Italian Job, Game has once again been plunged into uncertainty. The Guardian has reported that the rescue bid by OpCapita has failed to inspire faith from lenders and looks likely to fail.

RBS (yes, you know the bank that we all own) is currently owed something in the region of £45m by the Game Group.

On top of this huge debt it is reported that Game also owe HSBC and Barclays around £30m each, amongst the debt they have to distributors and game companies as well. The total debt is thought to be in excess of £180m.

A spokesperson said negotiations are ongoing despite the initial offer being rejected. OpCapita are said to be highly frustrated at RBS’ apparent lack of movement despite having the required funds to pay of Game’s debts. Speaking to industry mag MCV a ‘source’ within OpCapita said “Administration would be a very bad outcome for everyone involved. The clock is ticking before rent day this weekend.”

There are fears within the industry as to what OpCapita would do with the chain, some fearing that the chain could become part of Comet with a more general electrical/game shop setup. MCV’s source moved to quell these fears saying that OpCapita sees “the specialist model as being relevant to customers.” Also claiming that they are not ‘asset strippers’, “We’re about investing and improving. It’s a point of difference and we’re proud of it. We focus on running businesses. That’s what we’re about.”

Talk of potential interest from Gamestop and Walmart is yet to materialise into anything concrete. Both companies and others are thought to be putting packages together as and when Game Group enters administration if a deal cannot be completed by the end of the week.

This is going to be one worrying week for all of Game’s 6000 UK staff and we hope, for their sake that a positive outcome can be found. As Michael Caine said “Hold on lads I’ve got an idea.” Let’s hope someone does!

 

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