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OpCapita picks up GAME retail chain, plans to keep 333 stores open
The staff of UK video game retailer GAME's remaining 333 stores can breathe a collective sigh of relief today: investment firm OpCapita is buying the chain. "We are pleased to have reached agreement with the Administrator," declared managing partner Henry Jackson, "We strongly believe there is a place on the high street for a video gaming specialist and GAME is a leading brand in the £2.8bn market in the UK." The retailer's UK assets will be transferred to Baker Acquisitions Limited, an OpCapita funded company. The firm stated that it has "no plans for any further store closures," and that it hopes to safeguard the remaining 3,200 jobs the chain still has under its belt. Read on for the official press release.
UK retailer GAME goes into administration
Retailer Game, owner of the Game and Gamestation chains has entered administration. The chain has 1,270 outlets in Europe and Australia and rumors have circulated for months concerning unrest at the highest levels of the business. It was unable to agree deals with publishers Capcom and Electronic Arts for the latest titles, meaning it had to turn away customers looking to buy Mass Effect 3 during its blockbuster opening weekend. After the board informed shareholders that "it's uncertain any of the solutions [...] being explored by the board will be successful," the company's share price fell by 71 percent. A week later, the company withdrew its share listing from the London Stock Exchange as its share value collapsed to from 62p a year ago to 2.39p. A statement released today said that insufficient progress had been made in finding a rescue solution, but the company will continue to trade while talks continue: "Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator. In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."
