Video Games, Playstation 3, Xbox 360, nintendo, wii, ds, sony, microsoft, PSN, XBLA, Onlive, Playstation Vita, Wii U,
Posted by drew10 on Mar 15, 2012
Saved Game?

Saved Game?

There could be light at the end of the tunnel for troubled retailer Game Group. Talks are ongoing with turnaround group OpCapita, (the company that last year purchased electrical giant Comet) over a buyout.

Should the talks prove fruitful then a strict restructuring of the group would commence. So expect to see many of Game’s 600 stores (including Gamestsation) close. This may not be a bad thing as there seems to have been much wastage in the way the company was run. For example, in Crawley, West Sussex there are two game stores and a Gamestation within 500 yards of each other. I would expect to see these condensed into one shop. This kind of thing is repeated across the country and would surely feature in any cost saving exercise. The only surprise being that the Game Group haven’t taken these steps prior to this situation.

MCV are also reporting that Walmart (owners of Asda) may also be readying a bid.

Game have confirmed that they are negotiating with a potential suitor “The third party is seeking a dialogue with the group’s current lenders, however there is no certainty to the outcome. At the same time, the board remains in its own discussions with its current lenders as it continues to conduct a review of its business and assets. It is uncertain whether any of the solutions currently being explored by the board will be successful.”

Despite a long history of bad management both at store level and above and Games systematic destruction of the independent game stores nationwide, it would be a disaster if the group were to go under.

We will of course be keeping a close eye on the situation and will of course keep you posted.

 

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