GAME could avoid administration if bank RBS pulls its finger out
According to a report over the weekend, GAME could face administration as early as this week unless it finds £180 million to repay creditors, including major lender Royal Bank of Scotland.
However, there are plenty of suitors willing to take over the troubled UK retail franchise, with OpCapita, owner of electronics chain Comet, saying that it has the funds to pay off all debt and a management team ready to take over.
The only hurdle, it seems, is that RBS is dragging its heals over talking to possible buyers.
Speaking to games industry trade magazine MCV, a source "close to OpCapita" reports that the bank and substantial creditor has shown an unwillingness to enter "meaningful conversations" with potential suitors. And if the group does enter administration, it could devalue the company further, therefore scaring off possible investors.
"Administration would be a very bad outcome for everyone involved," the source says. "The clock is ticking before rent day this weekend."
OpCapita, which is credited with turning around the fortunes of Comet of late - having just had its best month in two years - sees GAME as an important outlet for the videogames industry. According to MCV's source, the company stores much value in dedicated shops believing that "the specialist model" is still "relevant to customers".
The source also claims that if OpCapita were to take over, it wouldn't be to combine GAME with existing Comet stores. "We are not asset strippers, we’ve never stripped anything," the source reports. "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."
Time though, is running out.
Can this last ditch attempt work? Who would you rather buy out GAME? Let us know in the comments below...
Pic: (cc) Yukino Miyazawa