After much speculation yesterday about GAME and their current financial troubles, Game Group Plc – The Owners of GAME and Gamestation issued a statement this morning:
In response to press speculation the GAME Group plc confirms that it is in ongoing dialogue with its lending syndicate to reach agreement on revised terms for its facilities. As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations.
A further announcement will be provided once discussions with its lending syndicate have concluded.
It’s also worth noting that yesterday EA boss John Riccitiello told investors,
“We are concerned with the financial condition of one of our major European retail partners, which could lead to both increased bad debt and lost sales.”
John Riccitiello isn’t the only concerned person at EA with CFO Eric Brown stating,
“We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results.”
On a personal note, I have had my up and downs with GAME but they are the exclusive retailer of the Mass Effect 3 collectors edition here in the UK, and I wouldn’t be happy if my pre-order which is about 6 months old was cancelled.