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GAME Group considering shutting down operations

GAME Group’s directors are considering ceasing operations, following continued losses and pressure from its creditors.
An unnamed source claims that “There is a real risk that Game’s directors will pull the plug because they can’t be sure that the company can survive through the next trading season, and then insolvency becomes inevitable.
“They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses.”
The possibility of closure comes in the face of increased pressure from those lending the company money, led by Royal Bank of Scotland.
“The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don’t have products to sell,” said the same source. “This could happen if more suppliers follow suit.”
GAME has already announced that it will be unable to stock EA products this March, following an inability to come to an agreement with distributors. It’s expected that the failure to stock this week’s release of Mass Effect 3 could cost the retailer £2.5 million alone.
Source: Express



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