GAME rescued by OpCapita deal
GAME, the troubled UK high street video game retailer, looks to have been saved by a deal that is expected to be confirmed on Sunday morning.
According to The Telegraph and the BBC, OpCapita, a consortium previously linked to buying GAME in the past, has stepped in paying £1 for the company, but taking on its £85m in debt. Ouch.
"Half a dozen banks, led by Royal Bank of Scotland, who are owed £85m, have approved the takeover," says BBC business editor Robert Peston, while the Telegraph is reporting that: "A deal, which will safeguard the future of the bulk of its remaining 333-shops, is likely to be announced as early as Sunday morning."
The deal means that the group's remaining 333 stores should be saved, however the future of the remaining staff is still unsure.
GAME was officially placed into administration on Monday, after the high street retailer was unable to pay its £21m rent bill.
PwC, which was brought in as administrator, immediately closed 277 stores and told 2,000 of the company's employees they no longer had a job.
The OpCapita deal comes after news on Friday that RBS, the group's main creditor, would be leading a consortium to buy the GAME Group but that now doesn't appear to be the case.
The news is likely to be welcomed by staff and the high street worried that failure to do anything could have meant more jobs loses and store closures.
OpCapita famously bought failing electrical chain Comet in 2011 for £2.