This post has a somewhat limited audience but may have an impact across the pond should these rumours prove true.
Currently floating around the internet are various rumours regarding high street retailer Game. These vary from not paying staff(not true) to long existing pre-orders being cancelled (partially true based on Twitter rage) and not having stock of this weeks big releases(also not true). However while these rumours were/are concerning the biggest worry is that Game has lost their credit insurance. What this means is that they may not have credit to purchase new stock with one anonymous source (does any news story ever have a named source these days) saying:
No credit from the agencies means no stock for the stores. It’s going to get worse before it gets better. You won’t find a new release this Friday
Obviously these rumours have been denied by Game but the original source of the story (MCV) has confirmed that Game
is facing challenges regarding its credit insurance and that its financial landscape has changed significantly since the beginning of the year..The chain admitted last month that it will struggle to meet EBITDA covenants requirements by February 27th.
It’s worth noting that Game trades and is a market leader in several locations worldwide.
GAME territory GAME market position UK & Ireland Market leader France Fourth Spain Market leader Scandinavia Market leader Australia Fourth Czech Republic Market leader
While a collapse of Game wouldn’t affect everybody, it would show that it is possible for a major dedicated games retailer to fail and could be the start of things to come.
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