Feeds

Troubled Game wins reprieve on debt, mulls axing more stores

High street chain told to shape up

Providing a secure and efficient Helpdesk

Game Group has been given a reprieve by its lenders, but the retailer may have to sell its overseas stores to secure it.

After a dismal Christmas, Europe's biggest video game retailer admitted that it was going to have issues meeting its debt commitments and paying the £80m rent on its 1,274 shops worldwide, and immediately went into talks with its lending banks to try to dig itself out.

Late on Thursday night, Game said that its debt-holders had agreed to give it a break on the terms of its loans.

"The board of Game is pleased to announce that it has now concluded discussions with its lending syndicate and agreed revised terms for its facilities," the retailer said in a canned statement.

However, the second chance comes at a price.

"Under the terms of the revised facilities, the group has agreed to operate within lower limits of its existing facilities than was previously available," the company said. "The group has also agreed to provide an updated strategic plan for review, and approval in part, by the lenders.

"This plan will cover all aspects of the business's activities and strategy, including its overseas operations."

Rumours had already been flying about that Game would consider getting rid of some of its international stores – located in France, Spain, Scandinavia, the Czech Republic and Australia – to help make ends meet. The group is already planning to close 50 of its 600 or so UK and Ireland stores before 2013.

Ian Shepherd, Game Group's CEO, said: "We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."

The retailer said in its Christmas trading statement that it hoped to be the European market leader for the launches of the PlayStation Vita and Nintendo Wii U expected in 2012.

Thursday's statement said that the board now expect to make a loss before tax of £18m for the year to the end of January. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.